Ed, can you post a pic?
Failing that, you have to decribe the situation better: if you can see ANYTHING
peeling off, then you likely see tissue sloughing off the
coral skeleton, which in turn may be bone-white or tinted from yellow to green by microalgae. Tissue loss is a very serious matter.
Of course, maybe you mean that the live tissue is intact, but that the color is merely fading (or bleaching) in some parts. Bleaching can be traced to many things, including light, temperature and infection. Bleaching can be a routine adjuctment on th part of he coral, or a sign of serious decline.
In large colonies of peltate and branching coral, and under certain conditions, it's not really unusual for the (somewhat shaded) tissue near the base to be paler in color than the light-drenched tissue above. Since a good deal of the color we see is actually the coral's zooxanthellae (symbiotic dinoflagellates 'farmed' in the coral's tissue), it makes sense that the little devils would be in denser concentration where there's more light to photosynthesize with.
I do think your research references may have led you a bit astray.
While
Turbinaria peltata can be found at considerable depths where light is weaker, once in the aquarium it proves to be a shameles glutton for light. A great deal of the energy sources it normally has to draw on in nature just aren't there in a tank.
The reason they opt for high-flow situations (like the faces of drop-offs, etc.) in nature is likely for the increased amount of food they can snag per minute. Food is much scarcer in a tank, so whatever zip the coral can get out of zooxanthellate photosynthesis is precious. So, I would have recommended feeding your
T. peltata with care, AND lighting it much better.
Right now, however, we have to look into the possibility of disease. If it's sick (on top of being malnourished), then curing it is the first priority.
So... a better descrip of the problem, perhaps.
Better yet ---a clear pic of the coral as a whole, and of the parts where the color is "peeling".
hth,
horge