Flexi Says: Melanoma is a type of eye cancer. It develops from pigment-producing cells which are known as melanocytes. Melanomas also can develop in the skin. Eye melanoma most commonly affects the eyeball. Eye cancer also can affect the outer parts of the eye, like eyelids, which are made up of muscles, skin, and nerves. If cancer starts inside the eyeball it is called intraocular cancer. It may be caused by exposure to harmful ultraviolet radiations or it could also be genetic.