To me it is to close to the eye for you to try anything. I would start calling Vets and find a bird one. I can operate on an adult but a chick is just too small for me to cut, so I too recommend a Vet look at it. Maybe something simple, maybe not but at least a pro looked at it instead of guessing on what it is. But my guess is the little one got pecked or bit by a bug (could even be a bee sting) and it is having a reaction or it's getting infected. My adult that had the cyst did not have "red" skin at all just the large bump and a runny nose.