I have a red splotch like area on the exterior of my vag. Its red + slightly peeling doesn't really itch and a little sensitive to touch. Wat is it?

Need an exam. The only way to figure this out will be to see your doctor for an exam and testing. A red painful lesion on the vagina is concerning for genital herpes. Schedule a visit for testing.
Candida. Could be yeast infection. Other possibilities are a dermatitis. See gyn for exam, culture and appropriate treatment.