Welcome to YorkieTalk. I'm sorry your baby is having this problem.
I would take him to a dermatologist as soon as possible. The dermatologist will likely save you a lot of heartache, time, and money, and most importantly, save your boy from suffering. This isn't just a cosmetic issue, it relates to his health.
I would be suspicious of a vet that said it is a chemical or sunburn and not to worry. Is your dog exposed to chemicals? Sunburn probably wouldn't be localized to one spot.
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