Imagine someone putting wool over your eyes so you can't see. It symbolizes being tricked or misled. He thought he could pull the wool over my eyes and make me believe he was a millionaire.
Pro Tip 2/3
Non-literal Phrase
The phrase is figurative and should not be taken literally. It means to be tricked, not actually covered with wool. When she explained the deal, I knew she was trying to pull the wool over my eyes.
Pro Tip 3/3
Conversational Tone
Used in an informal context, often in conversation, not in formal writing or speeches. I couldn't believe they thought they could pull the wool over our eyes with those excuses.