Its red and irritated. I think it my be from his nose when its wet and its getting in there and irritating it
JAKEISGREAT is right. If it were me, I would take a some peroxide and use a cotton ball to wipe the area then let it sit a few minutes. Then dry it all the way. I mean DRY with no moisture. Then put a thin (really thin) layer of desitin on the area to protect the skin. You can do this once a day, or twice if it is really sore. Some also use gold bond powder or corn starch. The point of the desitin is to protect the DRY skin from the moisture so that it can heal. Once it is healed, depending on how much the pup's eyes are watering, you can do it once a day or once every other day to keep the skin healthy.
You may want to figure out what is causing the eyes to water so much. It is a symptom of another issue. Could be food, could be environmental allergies, could be an eye issue (which are very common).
Good luck and hope you get him feeling better very soon.