FWIW the 3D image device is an ellipsoid of revolution. The illusion is created by truncating the ellipsoid so that the 2nd focus is outside the case.
As for explaining it to the kid, a 2D drawing properly constructed with compass and straight edge will both answer the question and teach him important elements of classical geometry. Ray trace by hand from a cartoon eye to where the ray falls. Construct the tangents, perpendiculars and rays using the compass, at least for one or two.
It's a great question, so worthy of effort. We'd all still live in caves if adults had not properly responded to such questions from children.
As remarked, I'm envious. A friends' child copped at attitude on me when I was trying to show him how to fix a kinked copper water line while installing a dishwasher for his Mom. He didn't used to be like that, so I'm hoping he grows back out of it.