"A sight to behold" was a common translation of the Greek an amazing spectacle, such as θαυμαστόν or simliar (for example, Homeric Hymn to Demeter, line 10). As such it is a very high register. As with many such expressions they have been taken and used ironically in inappropriate situations.
For example, somebody who is normally very proper who is seen totally drunk and disorderly and making a fool of themselves. You might describe the scene as "a sight to behold".
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