Your objective in everything is to be able to choose.
Regard it like a feedback loop. Most people find that if they watch their fingers they can better assure i. really accurate placement, e.g. by the frets, ii. avoiding pushing or pulling the strings sideways, iii. efficient finger angle, wrist placement, etc. So that when reading from the page, these things can then be trusted to keep happening. But you have to read things to memorise them in the first place ...
My usual thing is to say, one of the many reasons to memorise scales and arpeggios in particular is so that you can do everything in the previous paragraph. That can then also be extended to playing pieces from memory, and for the same reasons. But it is also essential to be able to play accurately and cleanly when reading, not least if one places ensembles, but also so that the learning process of solo pieces is as accurate and clean as possible.
So in summary I would answer the question by saying, look sometimes as part of your planned practice and development, also plan to work on looking at the page and indeed playing from memory with eyes closed - or indeed in the the pitch dark, which is strangely different ...
Simon Ambridge Series 40 (2005)
Trevor Semple Series 88 (1992)
Louis Panormo (1838)
Alexander Batov Baroque Guitar (2013)