It is just the top sheet, it happens to some boards through just age, improper storage or defect. Visually terrible but no real functional issue. You can continue to ride it in to the dirt as the sheet continues to pull off without concern.

Could you go through try and peel the whole layer off, sand, find a soft flexible clear coat to reapply, maybe but it would be a pointless waste of a LOT of time and some money. Id just ride it while using it as an excuse to look at new boards.

 

Thanks for the advice I'm fine with leaving it as is. I just wasn't sure with that layer was needed to protect the board from water damage or something. And if I would get more life out of the board by repairing it.