According to VetInfo, putting hydrocortisone cream on a dog's scabs significantly speeds up the healing process. Aloe vera cream also soothes irritated skin, but it must be used sparingly because it is toxic when ingested.
Flea collar dermatitis causes scabs, according to WebMD. Infected skin can be treated with a topical antibiotic ointment. Flea collar dermatitis may be prevented by fitting the collar loosely after airing it for one full day or discontinuing its use entirely.
Veterinarians prescribe topical or oral corticosteroids when appropriate for the dog's condition. Scabs may also be avoided through regular use of a dog shampoo for dry skin.