Fordyce spots are not caused by any specific condition, they naturally occur in some people. The spots are a type of sebaceous gland.
Sebaceous glands occur throughout the body, but when they occur in places that are not typically home to the glands, they become known as ectopic sebaceous glands. These glands are basically just fatty deposits on the skin that appear pale-red or yellow. Fordyce spots typically appear on the lips or the genitals. Although the spots may be bothersome to the person suffering from them, they are not medically dangerous and many experts do not recommend any type of treatment.