Campaign Lore

The name is first encountered during meditation by Thegwin Dreggs on March 31st 1000 AC while trapped inside the Silver Palace.

On March 33rd 1000 AC Rowena explains to Thegwin and the rest of Adventuring Party 3 that The Eye of Arik is a literal eye from Arik, a being imprisoned in another dimension who has dozens of eyes. Occasionally an eye is able to escape the imprisonment and become a source of chaos to wherever it goes.

Sources

TSR B3 The Palace of the Silver Princess (Green Cover).