An epidermoid cyst arises from the epidermis and contains cheesy keratin, while a dermoid cyst is a developmental anomaly containing dermal structures like hair follicles and sebaceous glands.
A lipoma is a soft, lobulated, benign tumor of fat cells, which feels much softer and less discrete than a firm, dome-shaped dermoid cyst.
An enlarged lymph node is typically found along a known lymphatic chain and may be mobile and tender if reactive, whereas a dermoid cyst is a fixed, non-tender subcutaneous nodule.
A neurofibroma is a soft, fleshy tumor that may exhibit the "buttonhole" sign (invaginating with pressure), unlike a firm dermoid cyst.