You need to have used a Burn Salve before - see if the Blacksmith has anything to say if he sees you when you have the Burned status, maybe you have to get close to the forge for that...
how I get the burning status without fighting the dragon though?
keep working with the blacksmith, you should be gaining fire resistance levels there as well...
I have fire resistance at level 25, but I meant how I get burned status to get burning salve
