Flavor, and why it is not taste
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Flavor is the thing customers choose on and the thing makers get most wrong, mostly by misunderstanding what they are buying.
Smell does most of it
What reads as "flavor" on a lip balm is mostly aroma, because very little product reaches the tongue. Which is why a strongly scented balm tastes of something and a strongly flavored one often does not.
It also means the dose is small. Most flavor oils sit at a fraction of a percent to a couple of percent, and more usually reads as chemical rather than as more.
What to use
Flavor oils made for lip products: oil-soluble, stable at pour temperature, made for the application. The default.
Essential oils: natural, and each one carries its own considerations. Citrus oils raise photosensitivity questions; peppermint and cinnamon are irritants at the wrong level; some are simply not appropriate for a product used near the mouth.
Water-based or alcohol-based flavorings: no. An anhydrous balm will not take them and they will separate in the tube.
Whichever you use, check it is intended for lip use rather than for candles or soap. The two markets share suppliers and the labels look similar.
Sweetener is a separate decision
Stevia or a small amount of a lip-safe sweetener makes a balm taste of something rather than smell of it. It is why a commercial cherry balm reads as cherry and a well-made handmade one sometimes does not.
It is also the thing that makes a balm attractive to a child, which is worth a thought about how it is packaged and where it is left.
The two that cause trouble
Adding flavor too hot. Volatile top notes leave. Take the melt off the heat, let it fall towards pour temperature, and add flavor late.
Adding flavor by volume. Weigh it. A few drops is not a specification and the next batch will not match.