The devil donut is a red donut with red frosting, devil horns, and a red tail.
Role in episode
The devil donut appears after Patrick steals SpongeBob's donut and interrogates Patrick for his actions. It and the angel donut seem to act like his conscience. The devil donut tells Patrick to not listen to the angel donut because it is covered with sprinkles, while the angel donut tries to stop Patrick from hiding the donut from SpongeBob.
After Patrick is unsure of what to do, the devil donut immediately devises a plan in which Patrick hooks the doughnut to a chain, eats it, and can pull it back up with the chain before SpongeBob even finds out what happened. Its plan was so clever that even the angel donut remarked that it was a good idea.
This is reminiscent of the popular media nicknamed "Psychomachia," where a character's conscience (usually depicted as an angel giving good advice and a devil giving bad advice) tells the character what to do in a certain situation.