Cysts grow inwards from the skin. They are common in the scalp but can grow anywhere. Cysts need to have the small area of skin from which they arose removed. I can usually remove cysts on the scalp without removing any hair, and will be happy to show you the cyst once it is removed (only if you want to see it!). In the scalp, I usually use dissolving sutures and a dressing that allows you to wash your hair soon after the operation.
Lipomas (lipomata to be strictly accurate) are harmless fatty lumps that grow under the skin (and sometimes under muscle). They can be very small or sometimes very large. Some patients have literally hundreds of them. Once the diagnosis is confirmed, these are removed through an incision over the top. For some large lipoma, liposuction may be a good treatment, although they may recur after this type of treatment, as it is impossible to guarantee that they are completely removed. Surgical excision reliably cures the problem is most cases.