Here's the deal with hornworms and those eggs.
First, that is a marking. The eye is near the head, the head is on the opposite end of the horn. The horn is really sensitive to them for some reason.
About the cocoons you are seeing (not eggs, my mistake) .... there is a wasp called the braconid wasp - Cotesia congregatus - and it is a good insect to have around. It looks like a giant fig wasp, not like the wasp that stings you. The wasp lays small eggs on the hornworm, and when they hatch, they bore into the hornworm and begin to eat its insides. When ready, they bore out of the wasp and begin to build cocoons. When the cocoons hatch, the wasp will exit and kill the hornworm. The best thing you can do when you see one covered with eggs is to carefully remove the worm from your plant and stick it in a dry glass container nearby. The worm will die, but the wasp eggs will still hatch and the wasps will fly away and go find more worms to lay eggs on, eat from the inside out, make cocoons, hatch, then kill more hornworms.
It's not a terribly unusual sight to see a hornworm with cocoons all over. IT's actually a good thing to see. You can make it a more frequent occurrence if you make sure those little baby wasps hatch!