Xanthelasma are sharply demarcated yellowish deposits of cholesterol underneath the skin, usually on or around the eyelids. Xanthelasma is a subtype of xanthoma.A definite cause is not yet known. Around half of the patients with xanthelasma suffer from high cholesterol or other disorders of lipid metabolism, often paired with diabetes. They can also occur in patients with normal cholestoral and low HDL. Source: Klaus D. Peter, Gummersbach