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A lump on the eyelid, which is known as a chalazion, is a common and benign condition caused by obstruction and inflammation of an oil gland of the eyelid. The lump may be on the upper or lower eyelid and is usually near the eyelashes.
A chalazion is caused when the opening to the oil gland becomes clogged with hardened oil (sebum). The oil secreted by the gland backs up and causes swelling and inflammation of the gland, which is clearly visible through the thin skin of the eyelid.