Eyelid cysts are caused when the opening to any gland becomes blocked. The product of the gland (eg sweat from sweat glands) builds up forming a cyst. Generally, unprotected sun exposure is the underlying cause of skin cancer formation.
Most benign cysts and lumps are removed for cosmetic reasons as they can look unsightly. Occasionally large cysts can cause watering or an abnormal lid position. Some lesions can itch, bleed or damage the eyelid.