It does seem kind of misleading to ask someone to close their eyes to visualize something in their mind. It has nothing to do with your eyes.

I can visualize my house in my mind while simultaneously seeing whatever is in front of me. Though the “mind’s eye” description is apt because it is like seeing with a totally separate set of eyes that has zero awareness of my real eyes and sight.

It’s almost like remembering the experience of seeing it, or inventing a new memory of seeing it.