Source : Webster's Revised Unabridged Dictionary (1913)

Wall-eyed \Wall"-eyed`\, a. [Icel. valdeyg[eth]r, or vagleygr;
   fr. vagl a beam, a beam in the eye (akin to Sw. vagel a
   roost, a perch, a sty in the eye) + eygr having eyes (from
   auga eye). See {Eye}.]
   Having an eye of a very light gray or whitish color. --Booth.

   Note: Shakespeare, in using wall-eyed as a term of reproach
         (as ``wall-eyed rage,'' a ``wall-eyed wretch''),
         alludes probably to the idea of unnatural or distorted
         vision. See the Note under {Wall-eye}. It is an eye
         which is utterly and incurably perverted, an eye that
         knows no pity.