Most chameleons—in fact most reptiles—are oviparous: offspring develop externally of the mother, inside an egg, until they are ready to hatch. However, some species of chameleon, such as the Cape dwarf chameleon here, are ovoviviparous: instead of developing externally in an egg, the young reptile gestates inside its mother until it is ready to enter the world.
Atmosphere Chameleons posted this very fascinating video of ovoviviparous birth in action. As you can see, the newborn chameleon comes out surrounded by a sticky sac-like membrane, very much akin to an egg, which is discarded nearly right away. These sacs are deposited on tree branches, and the stickiness helps to prevent them from falling. Though, as proven by the video, such a disaster isn’t always preventable. Fortunately for this lizard, the sac managed to snag safely on a leaf. Once the chameleon emerges from the membrane, he’s pretty much ready to go, and is able to move around and eat almost immediately.
In the video, you may also notice a tiny yellow splotch that tags along with the chameleon. That’s its yolk sac, much like you would find in an egg. This actually distinguishes ovoviviparous animals from viviparous ones—though both involve internal fertilisation and the young develop inside the parent, ovoviviparous species do not share a placental connection with their mother and are instead nourished by the yolk sac.