I couldn't find an origin for this phrase, although there is a medical definition for it .  The other definitions for this phrase fit with its use - someone who chooses not to see something, who has a tendency to ignore something especially because it is difficult or unpleasant.

Admiral Horatio Nelson is supposed to have said this when wilfully disobeying a signal to withdraw during a naval engagement. Nelson was convinced he could win if he persisted and that's when he 'turned a blind eye'. Read about the full story here . To turn a blind eye means that you are knowingly and willingly refusing to acknowledge a rule, an order, a problem, etc.

I've heard this term but rarely used it. When someone goes up a blind alley it means they have gone up an alley that has no exit. It dead ends. To go up a blind alley is to follow a course of action that has no good outcome. ( source )

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