I think the general thinking is that some colors are (by design or otherwise) more likely to draw attention to the lips than others and that there's really no reason people need their attention drawn to a 10-year-old's lips.
But, except for dressing up, I'd also think there's not really any reason at all for a 10-year-old to be wearing any make-up. I honestly have no idea how I'd go on the issue. I guess I'd start with investigating why she thinks she wants to wear red lipstick (or any other make-up) and "because my friends are" isn't going to be a good reason.
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