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 if this alcohol is near the end of an ingredients list, it will probably not affect your skin much.

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.

Other types of astringent alcohols include:

Studies have found that avobenzone becomes ineffective when exposed to UV light (it is not photostable; meaning that it breaks down in sunlight). Because of this, formulations that include avobenzone will usually contain stabilizers such as octocrylene.

However, some modern formulations (looking at you, EU!) are able to stabilize avobenzone by coating the molecules.

Avobenzone does not protect against the UV-B range, so it's important to check that the sunscreen you're using contains other UV filters that do!

The highest concentration of avobenzone permitted is 3% in the US, and 5% in the EU.

Though Caprylyl Glycol is an alcohol derived from fatty acids, it is not the kind that can dry out skin.

This ingredient is also used as a preservative to extend the life of products. It has slight antimicrobial properties.