Correct; it does not use the pass-through camera, so you can't see your surroundings (in fact no Oculus app does; it's only used for safety, if it detects a human or a pet entering your space, or if you get too close to the room boundaries you've defined).

In practice, moving around is not a problem, provided you have some minimal space around you (they recommend a 7ft diameter circle). I use their workout mat [1], which is perfect to give you a sense of where you are in the room at all times. I've also successfully used for exercise in hotel rooms when travelling (a bit more challenging, depending on the layout).

[1] https://shop.getsupernatural.com/products/vr-workout-mat