Erythema Multiforme: This condition is characterized by target-like lesions that can appear on the palms and extensor surfaces of the hands, among other areas. The description of circular lesions with dark red and white centers is consistent with the typical presentation of erythema multiforme.

Tinea Manuum: A fungal infection of the hand, which can cause circular lesions. However, these lesions typically have a more pronounced scaling and are less likely to have the distinctive "target" appearance.
Pityriasis Rosea: Although more common on the trunk, pityriasis rosea can occasionally present with circular lesions on the extremities, including the hands. The lesions often have a characteristic "collarette" scale.
Nummular Dermatitis: This condition presents with coin-shaped lesions that can appear on the hands, but they are usually more eczematous in appearance and may not have the same coloration described.

Lyme Disease (Erythema Migrans): While the classic presentation of erythema migrans is a single expanding lesion, it's crucial not to miss this diagnosis due to its implications for treatment and potential long-term consequences. The lesion can sometimes appear on the hands, although this is less common.
Rocky Mountain Spotted Fever (RMSF): This tick-borne illness can present with a rash that may appear on the palms and soles, among other areas. The rash can be petechial or maculopapular and may evolve, making it a critical diagnosis not to overlook due to its severity.

Sweet Syndrome (Acute Febrile Neutrophilic Dermatosis): Characterized by fever, neutrophilia, and tender erythematous skin lesions, Sweet syndrome can occasionally present with lesions on the hands. However, it is much less common and typically associated with systemic symptoms.
Granuloma Annulare: This condition can cause circular lesions, but they are more commonly found on the fingers or hands in a ring-like pattern and are less likely to have the central coloration described.