my lips are alwayws extremely dry. I've tried everything from labello over blistex and even just natural products nothing works! it is always the same my lips are dry so the skin goes down (if there are already some flaps of skin I pull it down because it's a strange feeling and it looks gross and then I bleed a bit..., then the skin grows again and it become dry again and I pull it down again...
Stop peeling it. It'll just become a vicious cycle if you continue to do that.
Get aquaphor instead of blistex or whatever you are using. That is the only one that I've found that helped with that type of chap lips. That, or I would get the hemp lip balm from bath and body works or jack black lip balm. Apply it throughout the day continuously, don't let it dry out. Right before you go to bed, coat your lips with neosporin to promote skin growth. If you leave your lips alone for 3-4 days, it'll clear right up. Hope that helped.
Aquaphor! Or Vaseline. It has helps you heal! A lot of chapsticks have stuff in them that actually make your lips dryer so that you use more and get "addicted" to them. Make sure you exfoliate your lips first though. This site won't let me put links but check YouTube for "Miss Jessica Harlow" and click the video "Kissable Lips" very helpful =)