"Electric Eye" is an allusion to the book "Nineteen Eighty-Four" by George Orwell, in the use of the name of the satellite that always watches people. In this dystopia, the government, IngSoc (Newspeak for English Socialism), is utterly totalitarian, and if citizens are caught rebelling in any manner, they "disappear".
The lyrics also include some humorous double entredres, such as the line "I'm made of metal", sung by the satellite.
Up here in space
I'm looking down on you
My laser's trace
Everything you do