Is the pain in the dry corners of my lips when i awake possibly related to the fact i have diabetes?

Cheilitis: Usually happens from lip licking or a suppressed immune system like with diabetes not well-controlled. It is usually infection with yeast or Staph or Strep. Try clotimazole 1% OTC twice daily for 2-4 weeks or Lamisil (terbinafine) for 2 weeks to see if the most common pathogen, Candida albicans, is at fault here. Also take one multivitamin daily, in case of a vitamin or mineral deficit.