Likely because it's a solvent for waxes (common in lip balm) that has very low toxicity. It's in a lot of cosmetics and soaps, which unfortunately makes life somewhat difficult for those allergic to it. read more
However, there is a secondary effect from certain preservatives that may be of benefit in lip balms. Specifically, the most commonly utilized preservatives for lip balms are parabens, and parabens (at sufficient concentration) have a numbing effect on the tongue. So including parabens in a lip balm may help mitigate the bitterness of the formulation. read more
Benzyl Alcohol is an aromatic alcohol used as a preservative, as the active ingredient in head lice treatment, and as a solvent. It is most often created by combining benzyl chloride (a suspected carcinogen that has been used as a war gas) with sodium hydroxide (lye). read more