Hydrocortisone butyrate is a potent topical corticosteroid that binds to intracellular glucocorticoid receptors, altering gene transcription. It suppresses the release of inflammatory mediators such as prostaglandins and leukotrienes, inhibits leukocyte migration, and reduces capillary permeability. These actions collectively decrease inflammation, erythema, and pruritus in affected skin areas.