WHAT IS THIS!?

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last week i woke up and a small bump was showing i didn't give it much attention but a couple days later it started growing bigger. what should i do?

should I be worried?

The main source of concern would be if you have had recently had unprotected penetrative sex or received oral. If you have go to a sexual health service provider.
It is quite possible this has no link to sexual activity, but may be linked to masturbation. What are your recent masturbation practices in terms of frequency … ?
Essentially, this looks like a penile cyst, but you have also severely irritated the skin at surface level