This is also called a caterpillar if the insect is a butterfly or a moth.
The job of the caterpillar is to eat and eat and eat. As the caterpillar grows it splits its skin and sheds it about 4 or 5 times. Food eaten at this time is stored and used later as an adult.
Caterpillars can grow 100 times their size during this stage. For example, a monarch butterfly egg is the size of a pinhead and the caterpillar that hatches from this tiny egg isn't much bigger. But it will grow up to 2 inches long in several weeks.