Its a song about oral sex. Blue is a code word for the past tense of the verb "blow".
Eye is (eyes) dripping with pain - his orgasm.
"getting off on lies" getting layed = having intercourse
"cause it dulls your surprise" - oral sex would be too exciting for starters - so have intercourse first.

"If its all right with you I could give you some head and shoulders to lie on'- visualize the body positions described!