Correct spelling, explanation: this is the correct form, because the base verb dry ends with y preceded by a consonant, and in such case, we change y into i when adding -ed ending. This gives us the form dried. At the same time, dryed is an incorrect form. The only correct spelling here is dried.

Definition of dried:
verb, past simple and past participle form of dry, to drain, wipe, or free from wetness
Have you dried the kitchen counter from that spilled coffee?
adjective, moistureless, dehydrated
I need to buy some moisturizer, my skin is dried.

Incorrect spelling, explanation: when a verb ends with y preceded by another consonant, y is transformed into i before adding -ed ending. Therefore dryed is an incorrect form, and the correct one is dried. Just like fry becomes fried, dry becomes dried.