This is an example of how living things grow and develop. The caterpillar goes into a cocoon then comes out and has turned into a butterfly. The caterpillar turns into something different than it was before and it is doing different functions.
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Alien Caterpillar: Caterpillars are more vulnerable to predators than during their later butterfly stage, so many have developed scary appearances for protection. This green alien is a native of the Philippines and seems to have taken the fake eye spots to an extreme, making its “face” quite large and scary. Normally, a caterpillar's face is much smaller, and not on the second abdominal segment.