The inside of my upper lip is swollen and sore after smoking hookah. could this be because of contact with the tobacco or smoke? i've never encountered this before in the past and the inside of my lip is a little red or white and swollen.

Likely infection: This is a common means of transmitting bacteria and viruses from one person to another. You've probably been infected with a virus that causes coldsores. However, there is also the possibility that you've been given a sexually transmitted infection, if the other people using the hookah were infected. It's wise to not share oral secretions unless you really know the person/people.

Burnt lip: It appears to me you might have burnt your lip or the heat / tobacco caused abrasion on the inside of lip. Usually it should clear up in a few days, if does not please seek medical attention.