Which of the following describes a dermoid cyst?

A dermoid cyst is characterized as a benign tumor that can contain a variety of materials, including hair, teeth, and even skin tissue. This is due to its origin from germ cells, which have the potential to differentiate into different types of tissues. Dermoid cysts are often found in the ovaries but can also occur in other areas of the body, including the skin and other soft tissues.

The presence of structures such as hair and teeth within these cysts is a distinguishing feature, setting them apart from other types of cystic formations which may only contain fluid or inflammatory tissue. Being benign means that dermoid cysts typically do not pose a serious health threat, though they can sometimes cause discomfort or complications if they grow large or become impacted.