When this happens it is necessary to replace the peephole with a new one which necessitates taking apart the old peephole before you can insert the new one. Although they appear difficult, peepholes are actually two pieces that screw into each other.
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Ask a friend to stand on the outside of the door and press against the peephole with his finger. This helps prevent the outer portion from spinning like a stuck nut on a bolt.
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Find the two small notches on the ring of the inside portion of the peephole. The notches are across from each other.
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Place the tip of a flat-head screwdriver into one of the notches. Turn the screwdriver counterclockwise to begin turning the inside portion of the peephole.
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Twist the inner peephole counterclockwise with your fingers once it is away from the door surface enough to grab. Pull the inner portion out of the door.
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Ask your helper to remove his finger and gently push the sleeve of the outer portion of the peephole through the door with a screwdriver. Open the door and pull the outer peephole out completely.