Recently had skin peel off scrotom and penile shaft. Almost like sunburn peeling skin. What causes this?

uncomfortable probl. At the risk of oversimplifying a potentially complicated problem, this sounds like an inflammation or irritation of the skin in that area causing the peeling. Did you use a new lotion or other product in that area? Something came in contact with that particular area to cause the inflammation and irritation and so the key is to try to identify it and then, avoid it.