right

heres how i would do it

make the eyelid and the eye and place the eye in the eyelid(im assumin ur usinga nurbs sphere and usin its end/start sweep for blinking)
group the two
now deform - either using scale tool or using a lattice ect

this should work now if u select the eye an rotate it SHOULDNT burst outof the eyelid

also to make the animation easier use a locator with the eye this way u wont need to pict the eyeball just its locator (if u havent done this already)
hope this helps