An epidermoid, or epidermal, cyst is a small, movable lump under the skin. It forms when surface skin cells move deeper into the skin and multiply. These cells form the wall of the cyst and secrete a soft, yellowish substance called keratin, which fills the cyst. If the wall of the cyst is ruptured, the keratin is discharged into the surrounding skin, which causes irritation and inflammation.
The cyst may remain small for years, or it may continue to get larger. These cysts are rare in children but common in adults. Cysts are not cancerous.