When you meet Albedo, he will ask you to submit to a series of experiments so that he can learn more about your nature. One of them is an intelligence tests, where you will need to solve a nearby mechanism.
There are actually two mechanisms that you will need to solve, one on the left and one on the right of the locked cube that forms the central part of the puzzle. The one of right is quite simple. You will be able to see two Seelies that you can walk through to activate. They will then take small circuits through the nearby pillars, activating them. That is the first mechanism solved.
For the second mechanism, which consists of two pedestals, you will be able to see a Seelie on the high rocks to the left of the area. Usher it to the pedestal, and then it is time to look for the final Seelie.
This one is tougher to find, as it is on a pillar out in the sea behind the main area. You need to jump from pillar to pillar to get to it, then usher it back to the pedestal. Climbing the pillars is not particularly easy to do, so try to land your jumps correctly.
When you get the Seelie back to the pedestal, you can interact with the block. This will cause the water level in front of you to drop, revealing some runes you can study with Albedo.