The image shows irritated skin around the upper lip, mouth and chin, with redness, dryness, flaking, small pimples and some yellowish crusts.
While it’s not possible to diagnose a skin condition from a photo alone, this type of rash can indicate that the skin barrier is inflamed, irritated, or possibly infected. Because it’s located near the mouth and has crusting in some areas, it’s important to take it seriously and avoid making assumptions at home.