Hangnails form due to dry skin or damage to the cuticle area, often exacerbated by environmental factors or repetitive tasks that strip natural oils from the skin. The discussion highlights that excessive handling of materials, like cardboard, can lead to hangnails by drying out the skin and cuticles. Some participants share personal experiences, noting that they often pick at hangnails or peel their nails instead of using clippers, which can lead to further irritation. Preventative measures are not explicitly detailed, but maintaining moisture in the hands and avoiding damage to the cuticles are implied as effective strategies. Overall, the conversation emphasizes the discomfort and annoyance of hangnails, particularly in physically demanding jobs.