Do caterpillars eat leaves?
Yes. Some caterpillars have such a voracous appetite that they can destroy entire forests. In the north east US the Gypsy Moth has been a real threat to the forests for years. There are acres and acres of forest that have had all their leaves eaten. This can kill the trees. There are smaller caterpillars around where I live that make large silk nests and they eat all the leaves on the tree. They are called Eastern Tent Caterpillars. They are very destructive.