Sugar Skulls, are candies made from sugar formed into a skull shape. They are given to both the living and the dead on Día de Muertos (Day of the Dead, I think in Mexico they celebrate on Oct. 30, in the States it is celebrated on Nov. 2 -All Soul's Day). The skulls aren't meant to be decorated as something morbid or creepy, but with happy, bright colors. I just find the way different artist decorate them to be fascinating.
you can learn more here: Sugar Skulls