Eye stitch which is also known as eyelet stitch is made using the same construction principle as Algerian stitch.
This is a stitch found on canvas work, pulled work and counted work. It is worked on even weave fabric, with the fabric held under tension in a hoop or a frame. It is and made up of stitches arranged in a square.
As a filling stitch it creates a regular geometric pattern of blocks which if worked under tension and pulled with each stitch, have a small hole in the center.
This stitch is simple to work as can be seen in the diagram you simply work a straight stitch into central hole.
The trick is to create neat central hole. In order to do this be sure that when you insert the needle into the fabric that the needle is taken down in the center and reappears through the fabric on the outside of the square.
If you want to make the holes larger with each stitch pull the thread slightly so that the fabric distorts slightly as it this tensioning action that creates the holes in the center of each stitch. If you want larger holes again, work on linen or a fabric that is used for pulled and drawn thread work and use a stiletto or a fine knitting needle to further define the hole.