Optical Cloaking is a technique where the light is bend around the blind / hidden point and then make the light return to its original direction.
In the most basic technique, the bending of light is done by reflecting the light by four mirrors placed in a defined pattern. There are actually two pair of mirrors of right angle (90 degree), in which one pair have reflecting surface on the inside and the other on the outside.
For real life demonstration or just a magic check out the image below:
The big boy is standing in the blind spot (hidden point) and so his legs are invisible. The image of the small kid is reflected four times by the mirrors and strikes your eye. The legs of the big boy is in the straight line in the middle and the light bend away by the mirrors and again returned to its original direction and to your eye let’s you see the small kid.
Now-a-days, more advanced techniques with the same concept are being used for magic / illusion shows, science experiments / researches.