Great question, thanks for bringing it up. It is a little hard to know exactly what is going on without seeing a clinician. If the skin is red, dry and peeling, it would be reasonable to try some moisturizer and see if it helps. The one thing to be on the lookout for is that too much moisture in a warm, dark area like under your foreskin can lead to a yeast infection. If that happens, its easy to treat, but might itch. Sometimes this dryness can signal a change in cleaning would be helpful. Typically, washing your penis gently with a little water and letting it dry well is all that area needs. Soap is often optional and if not completely cleaned out, might cause that dryness and peeling.