Mild forms of dry skin can simply be treated with moisturizer or thick creams. Severe dry skin can create itchy patches, rashes and irritated skin that needs more than moisturizer for relief. Dry skin can also appear gray and ashy in darker skin tones and as cracked or chapped lips. It is important to address dry skin that becomes cracked because germs can enter the skin and cause infections. You can treat mild forms of dry skin by moisturizing daily, avoiding hot water, using a humidifer and applying cool cloths to dry, itchy patches of skin for relief. For extremely dry skin, medicine may be required to relieve swelling, redness and itching.