In most magickal disciplines, the Third Eye is the seat of one's magickal abilities. Physically, it is situated almost directly in front of the pineal gland of the brain. It also directly corresponds with the Chakra of the head.
The concept of the the third eye probably originated in Asia around the 6th century B.C.E., in and around the Indian subcontinent. It was said that the Hindu deity Shiva posessed such an eye.