Depressions and small cracks in your nails are known as “pitting” of the nail bed and are often associated with psoriasis, an inflammatory disease that leads to scaly or red patches all over the body. “Individuals who suffer from psoriasis develop clusters of cells along the nail bed that accumulate and disrupt the linear, smooth growth of a normal nail,” Dr. Agarwal explains. “As these cells are sloughed off, grooves or depressed areas are left behind on the surface.” A physical exam is often all you need for a diagnosis, after which your doctor may recommend topical, oral, or injected medications or light therapy.