I've been having a red ring around my mouth for the past few days. It burns very bad & is cracking & flaky. I've had this problem before But its worse?

Dermatitis? It could be a dermatitis( skin irritation) which could be caused by different things. In some cases it could be exposure to something that irritates the area like a type of food, makeup, facial creams. You may use over the counter hydrocortisone in the meantime but if worse or not better after a couple of days visit your doctor or a Dermatologist(skin doctor) for evaluation.