Looking dry is usually fine as long as it's not cracked or overly flaky, if you're using something like aquaphor it should have only a slight sheen, and if you're using a lotion it shouldn't be shiny. You never want to smother your tattoo, but you do want to ensure you're using enough moisture for it. It's better to apply more frequently than slather the product on fewer times a day. And yes, Aquaphor will hold in more moisture over time as it's more occlusive than Lubriderm. Lubriderm and similar lotions are more emmolients and moisturizers, they soften skin and add moisture, whereas Aquaphor is about preventing moisture loss. And yes, you will see more cracking or dryness on body parts that move a lot.