Eczema skin rash on the knee. Eczema or dermatitis is a chronic skin disorder that shows up as scaly and itchy rashes. Other symptoms include blisters, dry/leathery skin, and ear discharge or bleeding. Eczema is due to a hypersensitivity in the skin, not unlike an allergy, which can lead to long-term inflammation. Eczema is most common in infants and tends to run in families. In contrast to psoriasis, eczema is often likely to be found on the flexor aspect of joints.