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Hi, I'm Dr. Bruce. Welcome to Just Answer. I'm reviewing your question now, and will post back with a reply ASAP.
How long has this been present? Can you post a picture of it?
That is pretty significant. That area could be damage to the eyelid there. It could be a growth / tumor of some sort. Could it be some sort of cyst? Do you feel that it is growing or getting worse? Have you had a vet check it out in person? Honestly a veterinary exam up close is going to be the best thing that could be done with this to get that answer and to then start up the therapy that is needed. This isn't a third eyelid / cherry eye situation which was something that I was curious about before seeing the photo.
A cherry eye is when the gland with the third eyelid prolapses. Here is a link on it.
More than likely it will be a vet that can tell the difference between a cyst and a tumor. Could surgery be needed to remove it? IT may. Will it resolve the issue? It depends on the cause.
A cyst isn't contagious. It is a fluid filled pocket due to obstruction of a gland or something.
I'm hoping for the best for Oddee. Give him an ear scratching and get him to your vet so they can be right up close and get some more information obtained. They can then tell you more specifically what needs to be done for it.