We just got back from the vet and all is well.
She has another yeast infection which I knew.
The paw looks okay. It is concerning though that it is starting on her other back foot. Sometimes they do peel but if it were to on for a long time, a biopsy may have to be done. Because it is hard to biopsy a pad, the toe is sometimes taken. So, as long as it clears up in a reasonable amount of time it should be okay. The vet said I could cut the parts that are hanging.