Progress or development that isn’t visible or of which you’re not aware (as in a larva developing inside its cocoon).
A lull in a process before progress resumes.
Feeling cozy, comfortable, or secure.
A period of rest, recuperation, revitalization, or nurturing (or a need for such).
See also: Insect, Larva, Caterpillar [1]
(2) The cocoon is a covering and may therefore symbolize unwillingness to uncover and face up to your true self.
(3) Are vou in the* cocoon? If so, it probably represents a web of fantasies produced by an unconscious neurosis which is cutting you off from reality. [2]
Dreaming of a cocoon may be a response to a sense of feeling overburdened with life issues and the consequent longing for relief. Such a dream may indicate a place where the consciousness can restore and re-create new paths of expression, or perhaps the birth of a new aspect of the self. [3]
If you dreamed of being in a cocoon, this strongly represents your need to rejuvenate and restore your body, mind and spirit. [4]