She's reading the mind of someone directly in front of her...apparently the thoughts are disgusting to her. Can't help, but think the eye is meant to be staring at the viewer and the thoughts being read are yours.
I think it's definitely intended to be looking at the viewer.
The pixiv title and the first part of the description are kono_lolicon_domome! ("You...damn lolicon!") I had to run the rest of it through a translator, but it seems to be asking about why there are obscene delusions regarding her pet (Orin) ..presumably in the viewer's mind. Anyone more versed in moon is more than welcome to provide a better translation.
