This is an eye with meibomian gland dysfunction. You can see the meibomian glands as little white pores along the eyelid margin. These glands produce oil which is an important component of the tear film (the oil keeps the tears from evaporating too quickly). When the meibomian glands clog up, the oil gets thick and can cause surface irritation.
In this video you can see that the oil comes out like toothpaste when the gland is pressed with a q-tip.
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