Iodine stains on the skin can be removed with rubbing alcohol. Iodine is often used as a topical treatment for preventing infections in minor cuts and scrapes by killing bacteria.
According to the Mayo Clinic, iodine can stain skin and clothing and is often used as a topical treatment before surgeries or for minor cuts. To remove iodine from the skin, use a small cotton ball or cotton pad and a bit of rubbing alcohol. Use small, circular motions to gently lift the stain. If the iodine is surrounding an incision, be especially careful not to scrub any stitches or open wounds. Rinse with warm water once the stain has been removed.
Drugs.com suggests using iodine as a topical treatment only. It should never be ingested. Avoid applying iodine around the eyes and mouth as it may cause irritation or rash. If some does get into the eyes, rinse with water right away. Drugs.com also advises against using iodine on deep wounds, open wounds, animal bites and serious burns as it can cause severe irritation or other side effects. Likewise, one should never cover or bandage a wound after applying iodine because doing so can increase the chance for negative side effects.