I couldn't find a camera when it was at it's worst, but this is pretty representative. It was a flakey/scale kind of peeling and the skin underneath was a different texture and brighter pink. I did use a lip exfoliant product followed with a moisturizer, then sealed with a vaseline type lip balm. It kept things livable and reduced my urge to pick at the dry skin.
I think the exfoliant helps to get rid of the dry skin without damaging other layers. Like sandpaper on a board... if you just pull on the splinters, you may end up taking off more wood than you planned.