re: Dog eye infection - what am I dealing with?

Difficult to say with just picture. Dogs can get meibomian cysts which look similar. Sometimes can be cleared with some antibiotic eye ointment. Some have to be surgically removed. As long as its not directly rubbing on cornea which can cause corneal ulcers then you can probably wait and monitor it. Dogs also commonly get benign skin tumors on their eyelids which have to be removed. I would go get it looked at and get some eye meds if it continues to get bigger and more inflamed.