Eyelash pixie cup, eyelash fungus, eyelash cup, scarlet elf cap, Molly eye-winker–all are common names for this diminutive fungus.
As noted in the Wikipedia entry on Scutellinia scutellata, this species is common across North America and Europe, and recorded from every continent (yes, even Antarctica). If you have yet to see it, look for bright orange spots on rotting wood and damp soil. I only noticed it for the first time early this summer when it was pointed out to me. So small! I suspect now that I know what to look for, I’ll see it more often. Michael Kuo of MushroomExpert.com had to have his eyes opened to it as well: Scutellinia scutellata.
If it reminds you somewhat of a sliced carrot, the pigmentation is due to the same group of pigments found in those root vegetables: carotenoids. Is it edible? Doubtful, and even it is, it’s not worth the effort gathering something that is about the size of the flat end of a pencil eraser.
Mykoweb has additional photographs and a scientific description: Scutellinia scutellata.