A Dermoid Cyst or teratoma in the ovary typically contains a diversity of tissues including hair, teeth, bone, thyroid, etc. Teratomas arise from germ cells, which are the cells that go on to later develop into a person’s gametes (such as sperm and eggs). At early states, germ cells have the ability to turn into any cell in the body. Most teratomas are benign, but some can become malignant, especially if they are located in the testes.