Hi, I am having this strange red circle under eye, it is very dry and sometimes skin on top of that gets white and peals off. Please help.

The eyelid skin. can suffer from the same ailments common to other parts of the body and some unique ones as well due to influence from tear film at times. In this case it could be a hypertrophic lesion that would benefit from topical therapy versus inflammatory & would also benefit from the same. In uncommon cases skin carcinomas may begin the same way. Have your Ophthalmologist look at the lesion for diagnosis.