This phrase implies you can visually recognize someone but lack personal connection or interaction. At company events, I know many colleagues by sight but haven't worked with them directly.
Pro Tip 2/3
Acquaintance Level
Use this phrase to describe a low level of acquaintance, mainly through frequent visual encounters. I know some parents by sight from school meetings.
Pro Tip 3/3
Not for Introductions
Avoid using this phrase when introducing someone, as it indicates you're not personally acquainted. I can't introduce you to her; I only know her by sight.