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This ingredient gets a bad rep because it is irritating and drying due to its astringent property. Astringents draw out natural oils in tissue to constrict pores and dry out your skin.

However, alcohol denat. is not all that bad.

Due to its low molecular weight, alcohol denat. tends to evaporate quickly. One study on pig skin found half of applied alcohol evaporated in 10 seconds and less than 3% stayed on skin.

This also helps other ingredients become better absorbed upon application.

Studies are conflicted about whether this ingredient causes skin dehydration. One study from 2005 found adding emollients to propanol-based sanitizer decreased skin dryness and irritation. Another study found irritation only occurs if your skin is already damaged.

Small amounts of alcohol are generally tolerated by oily skin or people who live in humid environments.

The rule of thumb is this ingredient will probably not affect your skin much if it is near the end of an ingredients list.

One thing to note:
People with ALDH2 (aldehyde dehydrogenase 2) deficiency may experience skin irritation from continued alcohol use. About 8% of the world's population have this deficiency.

The Cosmetic Ingredient Review Expert Panel has determined denatured alcohols to be safe for use in concentrations between 0.05% and 12% (depending on which denaturant is used).

Also...

This ingredient has antimicrobial and solvent properties.

The antimicrobial property helps preserve products and increase their shelf life. As a solvent, it helps dissolve other ingredients.

Look for formulas that contain glycerin, hyaluronic acid, or panthenol if you want to offset any drying effect.

This ingredient will trip away your skin's natural oils/lipids that help it lock in moisture. This can worsen dryness, trigger eczema flare-ups, and aggravate rosacea.

Be sure to patch test any product with this ingredient if you have dry or sensitive skin, eczema, or rosacea.

You'll typically see this ingredient used in very small amounts; anything above 0.001% in a leave-on product or 0.01% in a rinse-off has to be named on the label in the EU. The citrus oils that carry it sit around 0.5-1% in a finished formula.

Fresh limonene is a weak allergen; the real issue is that it slowly reacts with air and then breaks down from oxidation to create hydroperoxides (which are strong sensitizers). This is why suppliers are required to keep the peroxide value below 20 mmol.

Positive reactions in people being investigated for eczema vary:

It's worth skipping if you have a known fragrance allergy or a compromised barrier, but the risk is low for most people.

Older or long-opened products are also more likely to bother you than fresh ones due to oxidation.

You'll also recognize water as that liquid we all need to stay alive. If you see this, drink a glass of water. Remember to stay hydrated!