Lipase. Lipase is an enzyme that breaks down dietary fats into smaller molecules called fatty acids and glycerol. A small amount of lipase, called gastric lipase, is made by cells in your stomach.This enzyme specifically digests butter fat in your food.The main source of lipase in your digestive tract is your pancreas, which makes pancreatic lipase that acts in your small intestine. First, bile made in your liver and released into your intestine converts dietary fat into small fatty globules.he main source of lipase in your digestive tract is your pancreas, which makes pancreatic lipase that acts in your small intestine. First, bile made in your liver and released into your intestine converts dietary fat into small fatty globules.