Bunny Hood

The Bunny Hood is a vanity item equipped on the Social Helmet Slot. It can be gained by killing Corrupt Bunnies. It has a drop rate of 1.33% (1:75 chance).

Farming
Acquire several Bunny Statue and some wire to spawn Corrupted Bunnies during a Blood Moon. You can spawn unlimited Corrupted Bunnies as they do not count towards the "3 spawn limit" used by statues (The statues check for regular Bunnies when looking for the limit). You will need Vilethorn or a weapon that can go through walls to kill them. Alternatively, spawning them above a pool of lava that is not deep enough to destroy the item works as well. If you are strong enough, though, you only need to stand on a flat area with your Clockwork Assault Rifle and shoot straight ahead.

The same tactic can be used during a normal day by using Vile Powder to turn the spawned bunnies in Corrupted Bunnies.

Trivia

 * The Bunny Hood may be a reference to Donnie Darko.

Adding this mate:

It's also a refference to Legend of Zelda's Bunny hood.