When it is a caterpillar, the insect is in what is called the larva stage. During this stage, the caterpillar eats and grows in size and sheds its skin over and over. Eventually, it forms a chrysalis, which is like a shell around the caterpillar. This is called the pupa stage. Taking anywhere from a few days to almost a year, the caterpillar changes inside the protection of the chrysalis. Finally, the chrysalis opens to release a beautiful butterfly. This is the final adult stage. When the butterfly lays eggs of its own, the cycle repeats itself.