From Paula S. Morgan,
Your Guide to Beadwork.
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This beaded bead is made with a 19 MM wooden bead form covered by a strip of beaded Peyote Stitch. Here's what you'll need to make your own Beaded Bead:

1 plain wooden bead, 3/4 inch or 19 mm in diameter.
Transparent matte aqua, pink-lined clear, and opaque white size 11 Czech seed beads.
Size A white Nymo.
Size 12 beading needle.

You can purchase wooden beads at any craft supply stores such as Hobby Lobby, Michael's or Joann's Fabrics. You may even be able to find them in the Toy Department in stores such as Wal-Mart, K Mart or Target.