Yes, it will heal by itself, but you MUST stop picking at it. Try to find another outlet of that physical frustration. For Christmas, my girlfriend got me a ring that's spins. There are a bunch of similar rings, and at least this one is really fun to spin. I plan to get more.
She also bought me Crazy Aaron's Thinking Putty. This actually helps probably more than the ring while I'm at work, where I'm a programmer, so I sit at a computer all day. I've found that I'm most likely to pick at my nails while mulling over a difficult problem, but that having a ball of this in one hand really helps ease my nerves.
Anyway... I hope I help you overcome your picking. I'm getting better, and these tools have really helped so far, but I just bit a few nails today, so I still need work. Good luck!