In this passage, Nabokov uses Kinbote’s commentary on the fictional painter Eystein to make a real point about the nature of art. Eystein wasn’t a very good painter of people, but he could paint objects so lifelike that a viewer couldn’t tell if those objects were really in front of them or not. To exploit this skill, Eystein would sometimes insert a real object alongside a trompe l’oeil painting of that object so that it
really wasn’t clear what was real and what wasn’t. To Kinbote, this isn’t art—it’s “trickery.” To be real art, a work has to strive to “create its own special reality”—in other words, art should exist on its own terms, without trying to depict or incorporate outside reality. On the one hand, this is a credible dismissal of a painter more interested in a cheap gimmick than making an original statement. On the other hand, it’s possible to read this as something of a joke—
Pale Fire itself blends art, artifice, and reality so often that it can make a reader’s head spin (for instance, the United States is real, New Wye is a real place in the world of the novel but it doesn’t actually exist, and Zembla is neither a real place in the world nor in the novel). Of course, Nabokov mixes these layers of reality to make complicated points about art, delusion, and order in the universe, whereas the payoff of Eystein’s work is cheaper.