Jackrabbit, I edited your title to be more specific about the problem. Not only will more people read it, but it will show up in searches in the future.
Now, to your dilemma. My first inclination was to say euthanize the poor doe, and that still may be your best solution for her sake.
But I remembered a problem I had with my Pilgrim gander. He tore a toenail, not much of an injury, but every morning it was a bit worse until there was a sizeable open wound. We had an ongoing rat problem at the time, but I never thought they'd attack a goose. Wrong! At night they were tormenting him, attracted by the smell of blood and making it worse. Once we suspected this, we attached quarter inch hardware cloth to a dog crate and put him in there every night. The wound began to heal and soon he was well again.
So I ask you: do you have rats? Is this doe's cage rat-proof? No access points larger than 1" x 1" and that includes open-topped J-feeders? Take a minute to consider this possibility. It may not be the doe biting herself, although once having an open wound, she may be worrying it in an effort to be more comfortable.
The eye looks like either a cataract or something called "moon eye."
I found this old thread, which gives a bit of information. You could google the term that Devon uses to find out more.
https://rabbittalk.com/threads/is-this-moon-eye.2641/
If you google
rabbits moon eye you will find info about various rabbit eye problems that resemble this.
I would probably cull this doe if she were mine. You can't breed her like this and the eye problem may be genetic. But before you do, make sure you don't have a rat problem.
~ Maggie