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I will have to keep a few possibilities because it difficult to know what exactly it is without visualizing the skin lesion.
Dry scaly patch on upper lip could be either
Pityriasis alba Or else it could be Tinea faciei/
fungal infection.
A KOH wet preparation made from a small amount of scale scraped from the surface of patch can be visualized under the microscope for fungal elements.
If KOH is positive, one of the
topical antifungal agents e.g sertaconazole, bifonazole, luliconazole etc may be chosen and used twice daily for 2-4 weeks.
Most likely KOH would turn up as negative and would then be suggestive of Pityriasis alba.
Pityriasis alba is nothing but a dry scaly patch of skin which is light in color as compared to surrounding skin due to
post-inflammatory hypopigmentation.
Treatment of P. alba is treatment of underlying dryness with a moisturizer, twice daily.
Specifically for the dry, scaly patch you may use an OTC
topical steroid e.g cortisone cream, twice daily, over and above the moisturizer.
Use a gentle cleanser for face wash, twice daily and avoid soaps etc.
Regards