Here's how I hear it (with one other minor correction).

He stands on his bridge upon his one good leg
Clutching a spyglass in his one good hand
He listens to the crashing waves with his one good ear
Peering through the glass eye for any sign of land

CHORUS
Peering through his glass eye, oh, he'll be looking long
He's got one eye made of glass and the other (huh!) eye is gone

He watches all the rum stores, the sailors all are drunk
He watches out for rocks till every ship is sunk
He watches out for pirates, and his whole crew is dead
His library’s extensive but every book's unread

CHORUS

He lost one leg in the war, the other's made of wood
He's got a hook for one hand, he'd lose that if he could
He's an unsuccessful sailor, his choice of work is poor
You'd think he’d change his mind, but he lost that in the war

(Tune of Cho)
He's an unsuccessful sailor, his story's sad to tell
Half of him is living and the other (huh!) half's in hell
He's a lame-ass, crippled pirate, misfortune's only friend
At least there won’t be much to bury when he meets his bitter end (huh!)