1) It may be a sock 2) Kukla or Ollie 1) Nearby marionette 
A hand puppet is a type of puppet that is controlled by the hand or hands that occupies the interior of the puppet. Glove puppets are a variation of hand puppets. Rod puppets require one of the puppeteer`s hands inside the puppet glove holding a rod which controls the head, and the puppet`s body then hangs over most or all of the forearm of the .....
(from the article `puppetry`) These have a hollow cloth body that fits over the manipulator`s hand; his fingers fit into the head and the arms and give them motion. The figure is ...
[n] - a puppet with a cloth body and hollow head
glove puppet noun a puppet with a cloth body and hollow head; fits over the hand