CXOU J110926.4-650224 is a candidate transitional millisecond pulsar (tMSP) with X-ray and radio emission properties reminiscent of those observed in confirmed tMSPs in their X-ray 'subluminous' disc state. We present the results of observing campaigns that, for the first time, characterise the optical and near-infrared variability of this source and establish a connection with the mode-switching phenomenon observed in X-rays. The optical emission exhibited flickering activity, frequent dipping episodes where it appeared redder, and a multi-peaked flare where it was bluer. The variability pattern was strongly correlated with that of the X-ray emission. Each dip matched an X-ray low-mode episode, indicating that a significant portion of the optical emission originates from nearly the same region as the X-ray emission. The near-infrared emission also displayed remarkable variability, including a dip of 20 min in length during which it nearly vanished. Time-resolved optical spectroscopic observations reveal significant changes in the properties of emission lines from the disc and help infer the spectral type of the companion star to be between K0 and K5. We compare the properties of CXOU J110926.4-650224 with those of other tMSPs in the X-ray subluminous disc state and discuss our findings within the context of a recently proposed scenario that explains the phenomenology exhibited by the prototypical tMSP PPSR J1023+0038.