Why it’s here: At low concentrations it draws water into the outer skin layer as a humectant. At higher concentrations, generally above 10 percent, it also loosens the bonds between dead skin cells, giving it a mild exfoliating or keratolytic effect used in treatments for very dry, rough, or thickened skin.
A small organic molecule that is a natural component of human skin, part of what's called the skin's 'natural moisturizing factor.' Cosmetic-grade urea is manufactured synthetically rather than sourced from urine, despite the ingredient's old reputation.
What the evidence says
The CIR safety panel reviewed urea used in cosmetics at concentrations of 0.01% to 10% and concluded it is safe as used, based on absorption, toxicity, genotoxicity, reproductive, and carcinogenicity data. Some irritation was reported in a few studies at higher concentrations (20% and above) and burning sensations were noted mainly in treatment of already-diseased skin rather than typical cosmetic use, but the panel found no genotoxic or carcinogenic concern at use levels. The report also notes urea can increase skin penetration of other applied chemicals, which formulators are advised to consider.
Context
Effect and irritation potential are dose-dependent: a 2-5% concentration in a daily lotion behaves very differently from a 20-40% concentration in a targeted foot cream or callus treatment. Leave-on use is the relevant context here since urea's job is ongoing hydration or exfoliation.