The nipple has a built-in muscle response

Nipples can become firm or stand out even when nothing touches them because they contain small bands of smooth muscle. Smooth muscle works automatically, without conscious instructions—unlike the muscles you use to raise an arm or make a fist. When those fibers contract, they pull the nipple upright and can tighten the surrounding areola, the darker skin around it.

Why cold and emotion can set it off

Cold and sudden emotional intensity can activate the sympathetic nervous system, the body’s rapid-response network. It adjusts functions such as heart rate and sweating, and it can also trigger contractions in smooth muscle. That is why a nipple may harden in the cold, during a surge of adrenaline, or with a strong emotional reaction, even without contact.

The response is related to goosebumps: both involve automatic muscle activity beneath the skin. But it is not a reliable signal of any one feeling. The same visible change can have different triggers, and the body can produce it before a person has consciously registered what is happening.