Lip Seals are custom engineered to have a tall, thin profile with a notched “lip” area, giving it a few advantages in sealing over an O-ring.
It is common for a Lip Seal to be designed to have 0.5 mm (0.020") of radial interference with the outside sealing surface. If an O-ring were designed to have this much interference, the force needed to install the O-ring would be very high, and the risk of damage would increase. But the Lip Seal has flexibility to be installed without damage, and the natural interference compensates for side to side moment of the piston in the bore, or for imperfect machining conditions.