If your nostrils are dry from the inside, the possibility that you have scabs from picking your nose is indeed extremely high. This is a very common phenomenon, especially with people who live in cold and dry climates. Typically, if you are living in such climatic conditions, then your skin will become hard on the surface and papery to the touch. Even the slightest tap can cause it to break open quite easily. With the condition of the skin being this way, if you manage to break it open, it will bleed and cause scabs very quickly. In excessively cold conditions, it could also scab before the blood can flow. The first thing you should work towards doing is keeping the inside of your nose moisturized and damp. This will automatically improve the condition of your scabs and will also help to prevent you from getting any more. Keep a tube of simple petroleum jelly handy for just this purpose and keep applying it to your nose regularly. This will be the most effective thing. For hygienic purposes, please remember to wash your hands each time you put your fingers in your nose. You should also remember to keep your nose clean at all times.
The best way to do this is to clean your nose thoroughly and well first thing in the morning. Take a bit of water in the cup of your palm and inhale slightly. Once the inside of your nose is all wet, pinch your nose a few times to loosen any mucus or dirt that is sticking to your skin. After this, you can inhale some more water in the same way as before and blow your nose powerfully with this. This will effectively remove everything from your nose, and will give you a clean nose for the rest of the day as well. In any case, this process will only keep becoming easier and easier on a daily basis if you keep your nose well oiled, so to speak. If you already have scabs, you can start the process of keeping your nose well moisturized by using a medicated cream to begin with. Remember to be extremely gentle when you are pinching your nose to loosen dirt or even exhaling. Both of these are vigorous actions and have the possibility of causing some amount of damage to your already sensitive skin. You can slowly switch to petroleum jelly after a while.