I don't know what they are dreaming about, probably flying insects or cuties of the opposite sex, but mine are all light colors at night.
Doesn't seem like good camp to me either but it is what they do.
Imagined if their eyes moves when they slept, they would look insane. lol
I can't get a good picture of it because Dandelion likes to sleep in the leaves as if he was a leaf except for the yellow stripe giving him away, but I'll keep trying.
Chameleons are so fun to observe.