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1 Skin diseases like eczema and scabies can also cause red itchy palms. 2  Bumps and exfoliation of palmer skin is observed in these conditions. 3  Bacterial and fungal infection of palms can be a reason for itchy palms. 4  Dry skin of palms can be a reason for itchy palms.
Depending on the cause of peeling skin on your palms, you may need to seek medical attention to cure your skin. Medline Plus states that there are three degrees of burns, ranging from first-degree to third-degree. First-degree burns are the least severe of the three, which often cause redness, pain and swelling.