What does the doctor mean by this? Is this a good thing? Please help!?

If he said "lymphoma ruled out" that is what he meant, no cancer. Lymphoma is a form of cancer. Any procedure where something is removed, they always sent it to a pathologist to be tested, to make sure there is no cancer, to protect you and themselves also. More than likely it is what they call a "fatty tumor" if they could move it. Sometimes they do get infected, swell and get red around them. A sebaceous cysts will do the same thing. Neither are serious.