Big toe is peeling badly. The middle of toe is pink and towards the edges there is more skin than in the middle. I put on lotion but its not fixing it?

More than dry skin. Such accumulation of dry skin may be an eczematous process. We must consider that the skin in this area is inflamed and turning over at a rapid rate. Things that can cause this include psoriasis, irritation, athlete's foot etc. If the peeling skin is near the nail, than it is related to an infection of this area.