My son had this too when he was even younger than yours. It ended up being allergy induced eczema. Not serious but gross looking anyway. We ended up using hydrocortisone lotion and it went away. Doctors might tell you that babies can't have allergies that young, which is absolutely wrong. Mine did and it took them forever to do anything about it.

My baby is now 15 mos but has been suffering from eczema since birth and she gets heat rashes when sweaty under her skin folds. I only bathe her with water usually and use either Dove unscented for sensitive skin when needed. I also use Curel Itch Defense Lotion and/or Hydrocortizone cream to help with itching. I'll be getting her tested for allergies soon because her skin is getting worse. Her eczema looks like ring worm. Dr. says it's called nummular eczema. Good luck!

I have eczema, and my older son did for the first year (hopefully it won't come back). My 2mo son looks like he may be getting it as well

Our pediatrician recommended regular (unscented) Dove bar soap, which helped a lot. I also got Aquaphor baby wash, which is good (Amazon had the best prices I could find).

Don't just use hydrocortisone without checking with your doctor first. While it's way down on the corticosteroid scale, it's still a corticosteroid.

My dad is also a pediatrician and recommended Triple Cream (made by the same company that makes Triple Paste diaper rash cream). It's hard to find (CVS is the only place I could find it) and costs about $12 for a smallish tube. My dad also said Eucerin was just fine. I use Eucerin Calming Creme (there's even a Target generic of this) for everyday use on myself and my kids. For extra dry spots, I use Eucerin Original Moisturizing Creme. It comes in a big tub and is really, really thick, so a little goes a long way. It works as well as Triple Cream but costs less for much more product. Regular baby lotions are crap in comparison!

The key is consistency. Apply lotion on dry spots at every diaper change and after every bath. That way you are sure to keep that skin hydrated!

The good news is that it probably bothers you more than it bothers him!

I hope you both feel better soon (and I feel you on the eyelid rash - that was a MAJOR flare-up spot when I was a kid, which is super embarrassing). Mine flares up badly on my hands because I wash them too often, but it got much better once I bought Cetaphil antibacterial bar soap and used it to wash my hands (again, Amazon). It's made as a facial cleanser but is soap- and fragrance-free, so it doesn't dry out your skin.