He is actually eating properly. What does it mean to remove the eye? How would the area look after that surgery?At this point I think the eye needs to be surgically removed. It looks far beyond saving to me and is most probably very painful to your rabbit. I had an older rabbit that developed a very bad eye infection that continued to get worse until her eye looked a lot like that, and her eye did have to be surgically removed.
After the surgery your rabbit will need to remain on a rabbit safe antibiotic and meloxicam(anti inflammatory pain med) for several weeks. If your rabbit isn't eating well then he'll also need to be syringe fed regularly until he is able to eat normally again.
Medirabbit: rabbit safe medications
https://wabbitwiki.com/wiki/Medicating_your_rabbit
You need a very good rabbit vet performing the surgery. @HalaBuns may have a rabbit vet suggestion for you.
It means that the knowledgeable rabbit vet performs a surgery under anesthesia, and surgically takes the ruined eyeball out and stitches the skin around the eye shut over the empty eye socket. The fur will eventually grow over the area for the most part.
https://veterinarypartner.vin.com/default.aspx?pid=19239&id=4951449
In my picture below, the rabbit on the left with the black fur around the eye has a normal eye(though it's shut in the picture), the rabbit on the right with no black fur where the eye would be, is my rabbit that had the eye removed.
View attachment 62996
From your picture in the OP, to me your rabbits eye looks beyond saving by just using medication/antibiotics, in which case surgery would be necessary for the removal of the eye. But you would need a knowledgeable rabbit vet and/or veterinary ophthalmic specialist to determine if this is the case and if surgery is actually needed at this point.
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