Just wanted to give a little update on how things are going. I ended up with 30 cocoons, and decided to keep 20 of them in a container which would maintain around 60 percent humidity, and the other 10 were kept at the humidity of the house which was close to 10 percent. The cocoons which were kept at 60 percent humidity were never misted and there was never condensation in the container - per Andee's advice I was very careful in this regard. My goal was simply to keep them at an average humidity level with no actual wetness of any kind contacting the cocoons.
There was a noticeable difference between the batches. All 20 of the cocoons kept at 60 percent humidity hatched into nice looking moths. However only 8 of the 10 cocoons kept at 10 percent humidity hatched, and the moths were just a little smaller and the wings were bit shriveled on many. These cocoons also took about 5 days longer to hatch. I realize the wings are not used, but I can only assume that if the wings are not as well expanded then the moth may be somewhat dehydrated and this could affect its overall health and the health of the eggs. Even though the pupae is inside a tough cocoon it's still a living and breathing organism and there must be some air exchange. Both batches laid quite a few eggs, but many of the eggs from the low humidity batch began to sink in the middle (I have a microscope to see them) where the others did not. I'm referring only to fertile eggs in both cases. I did not keep those eggs that sank. I did refrigerate many eggs, but I also kept some out because I was curious how they would do without refrigeration and wanted some babies right away anyways!! I was amazed that a VERY high percentage of those eggs hatched in a very short time. The babies are thriving. I've included a photo. There are about three days difference between these so the sizes vary a little. It's really hard to see the smallest ones in the photo but I'm guessing there's about 100 to 150 babies in this batch. It's always more than it looks like! So anyways in the end I have to say that in my case the humidity made a difference. However my case is unusual since I live in the desert and it's EXTRA dry here. I feel that in the vast majority of cases average household humidity is fine for the cocoons, but extreme dryness does seem to affect them. This is so much fun raising them - I thought it would be more difficult! I have only lost 2 babies so far, and those were probably damaged during transfer.
LINK ABOUT COCOONS -
https://www.quora.com/Does-a-cocoon-breathe
View attachment 183080