Ironic you brought this up in your post. I took Goldie to the vet a few weeks ago for a lump to the right of her spine. The doctor examined it & said that it was caused from an ingrown hair...she referred to it as a "dermatological cyst." She said that there's no reason to remove it & dogs can get these ingrown hair randomly - nothing specific causes it & it's not going to cause any problems. Let's hope that's what your dog has too!