hi deadlightbulb! the lesion seems like benign tumor called dermatofibroma to me. this tumour is usually found in hands and legs and seems to be result of some minor injury and followed by overgrowth of fibrous tissue.if the lesion pinched the dimple may appear at the sight of lesion which also called pinch sign.this tumour is benign in nature so do not need any aggressive treatment in fact can be left alone,but if seems to bother u ,can try some intralesional injection of steroids .which can show variable result in different individuals,otherwise can also go excisional biopsy can confirm the diagnosis.