A Ganglion is a sac of jelly like fluid. The sac is commonly called the cyst. It is always benign. How does it form? There is a leak in the joint capsule. The fluid from the joint leaks out. The body contains the fluid by forming a sac around it. When a lot of fluid leaks out quickly, pressure builds up in it and it becomes painful. If the fluid leaks out slowly, the cyst becomes large and unbecoming to its owner or its beholder.
Treatment
The first thing is to make sure is that it is a ganglion. Once the diagnosis is confirmed clinically or by testing,
It can be left alone if pain is not a problem.
It can be aspirated with a needle if it is unbecoming. But it may recur.
It can be treated by splinting the joint. This stops the pumping action of the joint and the fluid is not pumped out of the joint into the sac. The ganglion may recur after the splint is discontinued.
Surgical removal eliminates it but there is a small chance of recurrence or a new one cropping up in the same place. If the root of the ganglion is removed from the joint, it does not recur.