The area above my eyelid has skin flaking and itching

The skin flakes off and the area can become red

Could be anything from eczema to fungal. Try applying a basic anti-septic cream to it for a few days three times daily and see if it goes. If not, then I suggest you get a proper diagnosis as if you're using the wrong product you can actually make matters worse.

Good luck

PS: an alternative solution would be to apply a thin layer of set honey to it several times daily and over night. A bit sticky and messy but honey is one of the best natural skin healers.