Pimple On Dogs Sheath. A small amount of milky yellow discharge from a dogs penis is not always abnormal unless they are licking at it and they have redness around the penis and the sheath. Many dog breeds have thinner fur around the paws and the skin tends to be thinner as well.

The differences arises in the degree the follicle is clogged and how deep the clog is located. I wouldnt suggest putting anything on it as it will encourage more licking. A lipoma is a benign fatty mass that can be found anywhere on a dogs body typically under the skin.
If it doesnt look better in about a week I would go to the vets office and get an E-collar and an antibiotic spray.
Hives often resolve on their own if the case is mild. Lipomas are common types of tumors seen in dogs. A red bump on your dogs paw could be a mosquito bite. Here are some of the dog breeds predisposed to dog pimples.