ActiveX objects are executable code (practically programs) that can be downloaded and executed inside Internet Explorer. Before these objects are downloaded there is usually a warning dialog in Internet Explorer, asking you if you really want to download and use this object, but depending on security settings and security flaws in Internet Explorer you might not even see this warning dialog. Once the ActiveX object has been downloaded to your computer, it can do practically anything, for example infecting the computer with viruses, or install keyloggers or other nasty spyware. These possibilities are indeed also used in large scale by the bad guys on the internet.
Because of these risks, it is quite good to keep track of which ActiveX objects are actually downloaded to your computer, and be able to remove the unwanted ones. All-Seeing Eye notifies you of any added, modified or removed ActiveX objects in your computer, and also gives you the option to remove any of them immediately when they are detected.
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Example alert screenshot for this tool: