Fractional Laser for Atrophic Scar?

Your scar would certainly benefit from fractional laser resurfacing.  Nonablative (in other words non-wounding) options would leave the area pink for about a week after treatment, possibly with some dry skin.  The downside is that your scar would require numerous treatments to achieve a satisfactory benefit.  A better option for you might be an ablative fractional laser.  These treatments leave the treated area very superficially wounded for about a week and then pink for several weeks.  Although local recovery after an ablative fractional treatment is more extended (i.e. pinker in the treatment area for several weeks), I expect you could achieve a better result in the end and certainly require far fewer sessions to achieve your goal.  Fortunately, since the scar is localized to just the lip, you could likely hide the treated area with a bandaid, especially in the first week when it's most noticeable.  Importantly, atrophic scars do very well with this treatment strategy, as shown in a research study published by our group at the Laser & Skin Surgery Center of New York:

Weiss EW, et al. Successful treatment of atrophic postoperative and traumatic scarring with carbon dioxide ablative fractional resurfacing: quantitative volumetric scar improvement. Arch Dermatol. 2010 Feb;146(2):133-40.

If you proceed with this strategy, be sure to discuss medication to prevent against cold sores with your physician.  Laser treatments to the lip edge can cause a cold sore breatkout, so prevention is very valuable.  Fillers (like Juvederm and Restylane) might help fill the depression and serve as a nice adjunct in your optimal treatment strategy, but unfortunately filler will not improve skin texture otherwise and also is not permanent.

Fractional laser resurfacing can improve atrophic scars, although several treatments may be required.  If there is residual indentation left, it can be corrected with a dermal filler like Juvederm. The surface of the scar can also be treated with a laser peel to smooth away the edges.

The extension of the scar to the vermilion (red part of the lip) can be corrected with Juvederm.