This depends entirely on what's in the drops. For example, if the drops contain a steroid, then no, there is a risk using them in a dog's eye. Never use medication prescribed for you in your pet.
Yikes! I would put antiperspirant spray on it so it won't burn. Lead the licking dog to another room so it will be distracted when you spray it on. Just...
You will have to teach your dog a come/return command in this case until he is very reliable. Practice this command over and over in an area without squirrels to...