I have made Lemon Drop Pepper Powder. These give off a nice citrusy spice flavor to anything you add. The peppers are on a spicier side too. 

Here are the steps to dry peppers:

Step 1:

Air Dry or dehydrate your peppers. Air drying took a couple weeks compared to dehydrating for 24 hours. I layed the peppers on my dehydrating rack and had them air dry until they were crispy. I didn't dehydrate them since our apartment would smell like spicy peppers and burn our eyes. I'd recommend dehydrating outside. You can also hang dry them. 

Step 2:

Once they are dry, I grind them up in the coffee grinder. Link here for the one I use. Works great for grinding up spices. Since they are whole peppers I break the pepper in half and try to shake out all the seeds. You can deseed the peppers first by cutting them in half and removing the seeds before drying. This could be more time consuming. 

Step 3:

After they are grinded up into a powdered form I take a funnel and add them to the jar. You can also make pepper flakes.