its not a bad thing, its definitely a good thing but also its wasting time I liked a guy who did that with and seriously after a year I got sick of the games and moved on if someones not gonna make a move and do something about it aka ask them out then screw it. (I made effort to ask him out by the way and he pussied out and still continued to play the stare games)
Stop staring at her and talk to her. Why do guys do that? We don't know what guys are thinking when they stare at us, so it feels creepy and confusing. If you want to give her the impression that you dig her, ask for her number.
She's not scared. She's shy. Approach her! and don't give up on her :)