The answer to your question in the title is: No.
Firstly, you write it as one word:
makeup (no hyphen), and then it is either a noun or an adjective. If you write it as two words:
make up then it is a verb. The hyphen was dropped in the early 1980's.
In addition, the verb
to make up (to invent, construct something) is not related (conceptually) to the noun
Secondly, in your example, you have taken the infinitive (to make up) and split it. It is not wrong, per se, to split infinitives, even if purists will claim that one never should. Having said that, you need to be aware that splitting an infinitive often creates a slightly different meaning that what you intended.
Your version of the sentence doesn't roll off the tongue. However, you could (IMHO) get away with the following:
She makes up her soul with lies.
The difference being that the verb is now not divided by her soul.
If you want the cosmetics to be what makes up her soul, then you could possibly write
She applies a makeup of lies to her soul.
It sounds a bit odd, but what with poetic license (translation of song lyrics), you ought to be okay.
Some further suggestions based on the comments.
She puts a makeup of lies on her soul.
She wears a makeup of lies on her soul.
She wears a makeup of lies as her soul.
The third one gives a stronger feeling that her soul is basically constructed from lies, whereas the first two imply that she still has her soul, but it has been enhanced with a coat of lies.