Banded Wooly Bear
I took a picture of this fellow on my lawn. Looked it up in my National Audubon Society “Field Guide to Insects & Spiders”. I actually don’t have much luck identifying bugs from this book… but occasionally I get lucky. In its description it stated… “According to superstition, the amount of black in the caterpillar’s bristle coating forecasts the severity of the coming winter. Actually, the coloration indicates how near the caterpillar is to full growth before autumn weather stimulates it to seek a winter shelter.” It doesn’t really explain how it overwinters, or where. Do they burrow underground? Cocoon themselves up?
The Banded Woolly Bear is the caterpillar of the Isabella Tiger Moth. The caterpillar sheds its hairs forms a cocoon from the hairs. It pupates inside the hair shell.