It's very closely related to "aerial" or "atmospheric" perspective out of the water (note that these are not PADI terms); objects that are further away are interpreted as such due to a loss in optical clarity, luminosity, and contrast. When you look at a mountain that is far away, you judge it as further away because it's hazy and harder to pick out details.
Underwater, suspended particles amplify this effect, so objects that have reduced optical clarity, luminosity, and contrast due to turbidity in the water are interpreted as further away.
This is a perceived reversal from objects looking physically larger due to refraction; hence "visual reversal".