Although small, the gift shop at El Jarrón [1] probably offers the best selection of souvenirs in town, ranging from tourist kitsch to well-made Lencan pottery made by women in La Campa [2].
Another possibility is Artesanías y Más, a block north and 1.5 blocks east of the central park.
A visit to Lorendiana is a must, if only to admire the eye-catching displays of jarred pickles, chilies, pineapple, onions, and salsas. Candies made with dulce de leche mixed with vanilla (yum!) or with nance fruit (gag!) are available, or satisfy your sweet tooth with a homemade popsicle from one of the giant freezers. Flavors include mango, milk with cinnamon, and blackberry, to name just a few of the dozen or so varieties.
Links:
[1] http://www.moon.com/destinations/honduras/western-honduras/gracias-and-the-lenca-highlands/gracias/food
[2] http://www.moon.com/destinations/honduras/western-honduras/gracias-and-the-lenca-highlands/lenca-villages-south-gracias/la-campa