Seems like that part of Kayn's body is hardened flesh or maybe something similar to toughtened keratine, like nails. If the design that we were shown not so long ago was correct, Rhaast was the only one wearing armor, and his seems to be made with blood magic by twisting the body, made by Rhaast mostly to resemble his former body, as he doesn't seem to be too worried about Kayn's protection.
If Kayn were to drop Rhaast, the effect shouldn't go away as its a body transformed by magic, but it does seem that upon vanishing Rhaast and ascending, Kayn becomes capable of undoing said Blood Magic.
Judging by Aatrox's bio, taking over a host means overpowering its control over the body and relegating said conscience to the darkness Darkin live in during their imprisionment, unable to move, breathe, see, hear or anything, just darkness, solitude and oblivion. Once Kayn gets stabbed and his conciousness lost, Rhaast takes over and modifies the rest of the body with his magic, becoming the sole owner