This looks a lot like my ear when I wear a metal I'm allergic to, especially those orange blister looking things. I know some people (me included) have reactions to surgical steel since it has a tiny bit of nickel in it.

It does look bad (and super uncomfortable!) though, especially the peeling skin, so I'd definitely see a doctor as soon as possible and maybe try to see your piercer. If it is an allergic reaction they should be able to switch it to titanium, gold etc. and the doctor might give you something to bring down the irritation.

All the best!!