No, it is not in common usage. You would not be likely to hear anyone saying this on the street. It would be more likely found in dramatic literature than in a conversation in a cafe or bar. If you were to say this to someone, though, they would understand what you meant if you meant that someone was being deceived or was deceiving themselves and, at last, they can see the truth, as it is. A common way of saying this in the USA would be: s/he "woke up" to reality. If I wanted to encourage you to see the truth of the situation, I might say, "Wake up and smell the coffee!"

I don't know how common it is, as it takes person to have an epiphany so that this could be said, but it is used, and it does mean the same thing.

I think it's lifted from a Biblical quote, so if you used "the scales fell from my eyes", you'd sound a little poetic. Rajalala has given some more commonly-used alternatives. :)