This unfortunate condition is typically environmentally induced and should not to be confused with the naturally occurring 'lazy eye' attributed to weak eye muscles.
The term refers to the Harry Potter character named Mad Eye Moody who possessed one magical eye that could scan the surrounding for Death Eaters, including above and behind the wearers line-of-sight.
"Your sister has a bad case of the 'Mad Eye Moody'. I can't tell if she's looking at me and it's freaking me out!"
"I could tell she was a novice drinker because she was all 'Mad Eye Moody' after one beer."
"After driving straight through from Indy to Orlando, I was more than tired....I was 'Mad Eye Moody' tired!"