Hello and welcome to HCM
The site you mentioned for the swelling seem to be Dermoid cyst
or a lipoma
. Ths is a benign swelling and usually do not cause problems other than cosmesis although some dermoid cysts can penetrate and involve skull.
Because of the potential to slowly enlarge and possibly penetrate through the skull, surgical removal is usually recommended for dermoid cyst. Most simple cysts can easily be removed with a short surgical procedure under local anaesthesia .
Wish you good health.