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It looks like the bottom of the eye is larger than the top.
Maybe someone can recommend a fix for it. Depending on your skill level it could be worth it. It's got character.
Stupid question, is there a lip on the top side of the eye from being peened over that could be causing the top of the eye to seem smaller? In that case I would recommend filling down the lip prior to hafting.
maybe the steel folding Inside the eye top is only superficial and you might be able to use a rat tail or convex file to remove the fold or burr Inside the eye. sometime i have to clean the Inside of the rim of some of the eyes on some axes that have been beaten up over décades of different owners...