Hello, my name is***** and I have over 20 years of experience as a veterinarian.
I am so sorry to hear that Dixie has had cloudy eyes for a while and now has a red, oozing eyes that are bloodshot and she is squinting more.
Does she have cataracts?
The redness, oozing and squinting indicate pain and probably increased inflammation/pressure.
It sounds like Dixie is developing glaucoma.
Glaucoma is an increased pressure within the eye.
It can be a primary disease process, meaning that it develops in some dogs as a result of the way their eye is built, either a blocked drainage of the fluid normally circulating in her eye or the physical conformation of the eye that allows the drainage angle to narrow over time such that we end up with poor drainage and increased pressure. As the pressure increases the optic nerve and retina are compressed, which is painful, and the dog loses vision.
Some breeds have the propensity to develop glaucoma.
While we can use medications to help control glaucoma for a period of time eventually if the drainage is blocked completely no amount of medication will help and she will be in pain.
Secondary glaucoma happens when the eye has some sort of trauma, either physical trauma (being hit in the eye for example), a developing tumor, or an infection, or inflammation (such as from cataracts or diabetes) that causes increased sticky inflammatory products in the eye leading to blocked drainage. Sometimes we are more successful in these cases using medications for longer periods of time. We can use anti-inflammatories to decrease inflammation, antibiotics to treat infections and medications to control the pressure.
Long term control of glaucoma is best achieved via cryosurgery or laser treatments to decrease the amount of fluid produced and thus decrease pressure in the eye.
In dogs that we cannot control their pressure and the eye becomes blind it is sometimes more humane to enucleate the eye so they are not in pain. This may be the case with Dixie as she if already blind.
Ideally Dixie needs to see a veterinary ophthalmologist as soon as possible. If you are not interested in surgery, but want to try to save her remaining vision an immediate exam by her regular veterinarian is best today. They can prescribe medication to control the pressure so the eye(s) doesn't (don't) rupture.
Here is a link to help you find a veterinary ophthalmologist where you are located if you are interested: http://acvo.org/new/public/locate.shtml
Here is a link to an accurate article that will give you quite a bit more information about glaucoma and may help explain things a bit better then I have:
Best of luck with Dixie, please let me know if you have any further questions.