Many things could be causing the bump on your cats arm. it could be a tumor, or it could just be a swollen area from a fall or fight with another cat. you should see if it goes away in a few days, if not, call your vet
This could be caused by irritation from a pest (tick), a dermatologic condition (oily skin) or even dry skin. This probably isn't serious if isolated and not persistent.
The differential is so broad without more info. Most commonly it would be something benign like a callus or a cyst related to trauma. Of course there are more worrisome causes like cancer or lymphoma. Go to your local vet to have them look at it to get a definite answer.
The bump could have been caused by many things
-maybe your cat may have got poked with a fence or other sharp matter. the usual treatment for this is antibiotics