I have searched high and low for anything that could tell me what this is. No answers. No clues. Does anyone have any idea what this is and if it’s important or anything?
It is just flavor to the world. There is no gameplay mechanic attached to it 
It is the face of the end boss.
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I am soooooooo upset I can’t mine it away or anything and it’s taking up about 60 percent of the little island I settled on thanks for the help friend.
While I understand and sympathise, I’m sure there are a lot of players who would be over the moon to have an island like that – it’s the perfect location for a temple or secret cult base!
I’m surprised you can’t mine it though, I thought it (like the other landmarks) would be “re-painted” terrain rather than… whatever it apparently is made of. Did you try mining the whole area, or use the harvest tool like you would on the smaller rocks?
Perhaps you can build a platform/foundation over the top, and use the space for a large town hall or tavern or something?
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Normally I’d be excited to find something like this. I love discovering stuff like this. But man I had a plan for this little island! Haha I tried mining it, I dont think I’ve tried harvesting it. I’ll have to give it a try next time I get on. And I like the idea to make a platform over it, I’ll have to just do that if theres no way to remove it!
You can mine it, it is simple terrain blocks, just press “M” and click and drag on it.
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The picture is upside down, in fact ,as Bruno said, it’s the face of Cthulhu, the final boss, you can it in the dev streams 
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OH IM SO DUMB I thought it was like a goat or something 
Yeah I havent played in almost 2 years. Theres been a ton of updates. Theres more things I’m discovering with the game. I’ve always been a casual player, so to find out about the final boss is actually really cool
Now I see it too!
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Or a Medusa face! 