Step 1: Build a short list of proximal humerus lesions.
In a growing child, a lytic area near the shoulder end of the humerus usually comes from one of four lesions: unicameral bone cyst, giant cell tumor, osteochondroma or parosteal osteosarcoma. The trick is matching the age and the X-ray pattern to the right one.
Step 2: Use age as the first filter.
This boy is $11$ years old, meaning his epiphyseal plate is still open. Giant cell tumor needs a fused, mature epiphysis to spread into, so it almost never appears before the growth plate closes. That removes giant cell tumor from the list.
Step 3: Use the X-ray pattern as the second filter.
Osteochondroma sticks out from the surface of the bone as a capped bony stalk, and parosteal osteosarcoma sits on the outer cortex as a dense sclerotic mass. Neither of these fits an expansile lytic lesion inside the shaft. That leaves the lesion sitting centrally in the metaphysis.
Step 4: Confirm the classic site.
The proximal humeral metaphysis, right under the growth plate, is the single most common location for a unicameral bone cyst in the body. The cyst is filled with clear fluid, thins the cortex from within, and can make the bone expand, which matches the X-ray description exactly.
Step 5: State the answer.
The lesion is a unicameral bone cyst.
\[ \boxed{\text{Unicameral bone cyst}} \]