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Licking and hair loss on the abdomen many times starts as a comforting effort. Something has stressed the cat, and like a kid sucking his thumb, they start grooming the abdomen for comfort. Unfortunately, cats quickly become "compulsive" about it and it eventually leads to hair loss. Actually you should feel stubble hair in that area because the hair is not falling out, just being broken off.
There are homeopathic anxiety drops (www.homeopet.com) that can be used to ease the behavior and hopefully it will stop. Some vets use other medications if the cat is actually doing damage. It is called Psychogenic Licking...
To be diagnosed you would need to see a vet.
That can be anxiety or irritation..hard to say. You can purchase some regular eye wash (saline) and rinse the eye. With spring coming...things are blooming and that also can set the licking and twitching off but it now has become compulsive.
Lets hope so!!