The holographic dot is projected out to the target.
It does not get "beamed out" to the target like a laser but, the hologram puts the dot "out there" on the plane of the target rather than the reticle being at the weapon location.
Humm........let me see if I can find you a more suitable and better explanation than the one I just gave you.
OK GO HERE -
Try The Simulator - (fun, but not really an actual true simulation) and then click on "Technology" at the top of the page and then click on Making A Hologram on the pull down menu.
L-3 EOTech Holographic Weapons Systems