It has a two tier defense system. The 1st tier is the most obvious: the appearance of eyes on its “head”. In fact the eyes are simply sightless skin pigmentation. In other words they aren’t eyes at all. Also, the front of the insect is enlarged to give a snake-like appearance and it seems to have a mouth.
This is all designed to scare off any predator… and it usually works! In scientific tests it has been proven that various creatures from birds to insects are afraid of eyes. But these “eyes” are very unique. They give the appearance that a potential predator is being watched from every angle. This is because the skin with the tear shaped pupil-like black area is raised or bulging like a real eye.
It is interesting that an evolutionist I’ve read on this creature repeatedly used the word “design”. He also used human art to illustrate the curious effect of these raised “eyes”. These were certainly designed.
The 2nd tier of defense is found just between its real head and fake lip. Two finger-like appendages pop out when the caterpillar is frightened. Each is covered in a noxious toxin designed to drive away predators not frightened by the eyes.
Creation is all about design and the designer. God is amazing.