A blind spot refers to information that remains unseen for either the speaker or the listener during a conversation. 

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In the example, each character has their own blind spots. My blind spots are the impact that my behavior has on my friend and the story she tells herself about me. My friend's blind spot is my thoughts and feelings and my sincere intentions behind my behavior.

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Each person is unaware of one key part of the whole story: intention and impact. This situation, usually, leads to misunderstandings or switch-track conversations (every person bringing up different issues to the conversation).

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The way to bring the conversation back to track is by each party asking for inpact and intention. In other words, making visible blind spots that could derail the conversation; surfacing hidden assumptions that every party beliefs true.