What causes dark circles around the eyes? Dark circles have more than one cause, and their source determines the best treatment. On one hand, dark circles are common in fair-skinned individuals because the bluish hue of the muscle located underneath the skin can be seen through the paper-thin skin of the eyelid. In other patients, dark circles are caused by pigment being deposited on the skin. This skin pigmentation may be a result of chronic allergies or, more commonly, the ethnicity of the person. People who have dark circles and chronic allergies also tend to have dry, flaky skin.