Dynameshing a mesh directly is best when working with form at low to mid level resolution. In other words, it’s for making bodies and rough surface detail, but not fine surface detail like pores and wrinkles. The latter is likely to be lost to some degree.
Turning on projection in the DM menu will ensure you retain pretty much all your detail if you are working from one dynamesh to the next, as long as you’re staying at the mesh resolutions DM works at, which is generally under a million polygons. But if dynameshing a high poly mesh into dynamesh, loss in unavoidable…a 300k mesh will not hold 5 million polygons worth of detail.
However, you can work with dynamesh indirectly through freezing subD levels. This basically automates the traditional remesh and projection methods in the subtool menu for projecting high subdivision level detail, while you use dynamesh to make changes to the base mesh. You shouldn’t really lose any surface detail here, as that type of projection works great for surface detail, but youre always going to run into issues when you do something like put a tentacle where a face used to be, and try to project that detail. Radical changes in form will always be a bit messy, and require some touch up.
None of this should really matter for your problem. Like I said, I made a functioning mouth just fine on the demo soldier, and didn’t have to turn the rez slider up much at all. Just make sure to give DM some space to work with between the lips.
Layers can be great for shaping various facial expressions, although you should know layers do not work with Dynamesh. You’d want to get your mesh made to the point where you’re ready to start zbrushing as normal before you start using layers.
I wonder though if when you say “putting the bottom lip on another layer” , you actually mean making it a separate subtool. In which case no, the face should all be the same subtool, otherwise they become separate meshes, split apart, and unable to be sculpted on at the same time.
You may, however, want to put the lips into separate polygroups within the same subtool. This will help with such auto-masking features as “Mask by Polygroups”, and “toplogical masking” that can be found in the Brush>Auto Masking menu, and may be helpful when sculpting mouth expressions.