Is this a cyst?

It started off as a friction scar which burned for a few days, happened while having sex multiple times per day. Thought nothing of it but after I’ve left it heal up this has happened (photo) - it’s like the skin is hard, kinda feels like you can pop it but you can’t so I’ve stopped trying that. The skin can become very flaky and easy to peel off.
It’s underneath the foreskin and had it a few month’s now. Doctor said to me clean every day, don’t play with it etc. It’s still here, any creams recommended? Thinking to ask my doctor for surgery.

Keith, sounds like you have two completely separate issues here - the cyst, and yes I agree see the doctor for surgery, and, " The skin can become very flaky and easy to peel off " - this is about how the top layers of skin in the area have reacted to something or a combination of things it has been in contact with.
I wonder if you have tried a range of different things to deal with the original friction scar?
Also, check the skin elsewhere on your penis in strong daylight to see if any other skin looks even slightly distressed …

Yeah I have, doc said no soap first time I went. So I only cleaned with hot water. No improvement so I used zinc and caster oil cream and one other cream too only after the scar had healed over. I’ll nip into doctors when were allowed out again. The skin that peels off is on the cyst itself not anywhere else, everywhere else is fine

Water on penile skin should only be warm, not hot, particularly for the foreskin and glans / head.
So when I asked about different treatments you may have applied it is most likely the skin is reacting to the combined treatments you have tried - this should fade in time and return to its normal healthy state - this can take some months as long as no further irritants are experienced by it …