Being in a room with a dryer is not the best possible scenario for a FVIR water heater.
I would recommend having a plumber out to inspect the unit and clean the air inlet screen.
It is also possible that there has been a flamable vapor incident in which case the water heater should be replaced.
From the pages of Bradford-Whites Website
There are often a number of different causes for the same condition, so be sure to check them all -- even after you have identified the main reason for the problem. Some may be on the verge of developing, while others may develop right after you have fixed the primary cause. So play it safe...CHECK ALL CAUSES!
We recommend that you rely on an experienced professional plumbing and heating contractor for water heater installation and maintenance.