Stage two is the Larvae stage. The egg hatches and a caterpillar comes crawling out.  The caterpillar usually stays around where it hatched.  It's diet consists of mostly leaves, thistles, needles, and sunflowers.  "This caterpillar has thirteen body segments and eight pairs of legs. The 3 pairs of legs closest to the head will become its adult legs. The other, what are known as “false legs” will be used for climbing. When the caterpillar grows too large for its own skin, it will then split up through its back and the caterpillar re-emerges."