Small isolated red spots on legs and arms covered completely by dead skin which can be peeled off. no itch or increase in size. what is it?

Dermatologist: This must be inspected,preferably by a dermatologist, in order to make a diagnosis. Apparently there are no lesions on your face, hands, feet or trunk. With both arms and legs involved and no itching, I believe that insect bites are an unlikely cause. The scaling or dead skin with no fresh lesions suggests the process may be ceasing.

Can't tell: Even with a direct exam, it is difficult to tell what may be causing the red spots which peel. One possibility would be a drug reaction. If the problem persists, consult a skin doctor since it may also be a sign of another disease condition.