Do IPhone screens eventually dry out after water damage?

I got water damage to my phone and I only put it in rice over night a few days after it happened. Everything works fine but the screen is darker then normal but there's a large blue circle on the top middle of the screen. Also the blue has spread as time went on but the screen is clearing up along the right side very slowly. I was wondering if it would eventually dry out since the side is clearing or if I would need a new screen.

You probably should have put it in rice for a few days immediately after water got into it. The thing is, once water goes inside and it cuts off, you shouldn't cut it back on until it's completely dry; otherwise damage could be caused. The odds are, however, that you will need to replace the device as the blue in the screen is a sign that significant damage has been caused. Take it to an Apple or repair shop and see what they say about it, they may be able to fix it without you having to replace your phone.

You could get really lucky and hope the water evaporates and hasn't caused permanent damage. If internal damage has been done there's nothing you can do to reverse it now.