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The Cyclops is a mob that spawns in the Overworld. It has a VERY high spawn rate, so when building, make sure your buildings are three or less blocks tall to ensure that no Cyclopes will spawn in your home. This makes the Cyclops quite annoying when you are in a default super flat world, as they can spawn at that height level. They usually spawn in Plains.
The Cyclops is a neutral mob, harmless unless provoked. When attacked, nearby Cyclops will also be agitated and gang up on you, similar to Zombie Pigmen. They have a very large amount of health, so it is best never to provoke a Cyclops unless you have strong equipment for the purpose of withstanding the attacks of the Cyclops. It takes a diamond sword about 50 hits to kill a Cyclops. A Cyclops moves fairly slowly and cannot fit through tight areas, and can only jump one block high. They also have a fairly short attack range, making them a good source of gold if you refuse to go underground.
They will drop a single gold ingot about 3/4 the time and about every 17 Cyclopes drop a Bloodgem. Cyclopes are useful for enchanting as they drop two large experience orbs upon death.