Answer: Dermolipoma

Dermolipoma/ Lipodermoids are choristomas which contain epithelium derived tissues. They are usually found near superior temporal quadrant of the globe that may be quite large and extend backward and forward, but tend not to affect the peripheral cornea. Histologically, lipodermoids which are fat tissue covered by connective tissue. This is in contrast to dermoids are comprised of collagen connective tissue covered by epidermal epithelium. Lipodermoid gives a yellowish clinical appearance due to deep fatty tissue. This patient even has hair growing from the lesion
Surgical excision can be performed for cosmetically concerning lesions.
Dermoids can be associated with Goldenhar syndrome which is characterized by ocular anomalies, auricular appendages, aural fistula, and vertebral anomalies. Therefore, a systemic workup may be required.