In simple words: A fabric preferably cotton, that bears small diamond shapes resembling a bird’s eye.
In fabric terminology: A weave forming small-scale diamond shapes (diaper) each with a dot in the center, suggestive of the eye of a bird. Also, a small-scale (typically geometric) design of a similar shape. A somewhat bigger weave is sometimes referred to as pheasant’s eye. (Reference: Artlandia.com)
Due to the subtle texture, small & fine patterns, the bird eye weave, works well with suits and then dress shirts. It usually has a solid look very much similar to that an of an oxford fabric. It is therefore an apt choice for a more formal environment like business wear, a cocktail party or special events.
A lot of lighter shades in suits and pastel hues such as blue, lilac, lemon are preferred for dress shirts with birds-eye weaves, including whites.