Shellac is sold in two forms : Flakes to which ethyl alcohol is added, and liquid which has already been made into a liquid. The raw shellac, which contains bark shavings and lac bugs removed during scraping, is placed in canvas tubes (much like long socks) and heated over a fire. This causes the shellac to liquify, and it seeps out of the canvas, leaving the bark and bugs behind. The thick, sticky shellac is then dried into a flat sheet and broken into flakes, or dried into "buttons" (pucks/cakes), then bagged and sold. The end-user then crushes it into a fine powder and mixes it with ethyl alcohol prior to use, to dissolve the flakes and make liquid shellac.
It is used in wood finishing especially musical instruments, and in certain applications in electrical motor (Wikipedia), it is also used in fingernail polish. The thickness (concentration) of shellac is measured by the unit "pound cut", referring to the amount (in pounds) of shellac flakes dissolved in a gallon of denatured alcohol. For example: a 1-lb. cut of shellac is the strength obtained by dissolving one pound of shellac flakes in a gallon of alcohol. Most pre-mixed commercial preparations come at a 3-lb. cut. Multiple thin layers of shellac produce a significantly better end result than a few thick layers. Thick layers of shellac do not adhere to the substrate or to each other well, and thus can peel off with relative ease; in addition, thick shellac will obscure fine details in carved designs in wood and other substrates.
Shellac naturally dries to a high-gloss sheen. For applications where a flatter (less shiny) sheen is desired, products containing amorphous silica,[8] such as "Shellac Flat," may be added to the dissolved shellac.
Shellac naturally contains a small amount of wax (3%-5% by volume), which comes from the lac bug. In some preparations, this wax is removed (the resulting product being called "dewaxed shellac"). This is done for applications where the shellac will be coated with something else (such as paint or varnish), so the topcoat will adhere. Waxy (non-dewaxed) shellac appears milky in liquid form, but dries clear.
After a google search I found that it is also called: confectioners glaze, resinous glaze,beetle juice, pharmaceutical glaze, natural glaze, and Lac-Resin. You are most likely to find it in the same place as other wood finishes at the home store, hardware store, lumber yard.
I know you didn't ask for a paper on the stuff, but it was kinda fun.
Brodie