Optical illusions are visual perceptions that differ from objective reality due to processing in the brain. There are three main types - literal illusions create different images than objects, physiological illusions result from excessive stimulation overwhelming neural pathways, and cognitive illusions arise from unconscious inferences about the world. Factors causing illusions include color, eye structure, depth/distance, past experience, and lines/curves. Examples of natural illusions are rainbows, auroras, and mirages. Studying these failures of perception provides insight into the brain's visual processing.