Sand the peeling leather with the 240, then 400 and finally the 600 grit sandpaper to remove most of the peeling leather. Sand slightly outside of the peeling area to create a smooth transition from the original leather to the patched area.
Fill the peeling area with leather crack filler. Allow the filler to dry overnight. Sand the filler with 800 grit sandpaper. Apply a second layer of crack filler and press a leather grain patch over the filler to give it texture. Allow the second coat to dry overnight.
Apply leather dye over the crack filler with a soft cloth; match the shade of the original leather as closely as possible. Allow the leather dye to dry overnight.
Apply a leather conditioner over the entire surface area, including the newly repaired patch.