Pretty much this.I've never broken a vial of ink underwater to test this, but the ink wouldn't quickly disperse in water to form a large enough cloud to blind anything. You'd have a blob of ink roughly the volume of a vial slowly sinking. Squid ink disperses into a cloud because of the mechanism by which it is sprayed.
On the other hand, as a DM I like to encourage improvised actions with meaningful results, so depending on the tone of the game I might allow it.
Monster Manual p.326 said:Ink Cloud (Recharges after a Short or Long Rest). A 20-foot-radius cloud of ink extends all around the octopus if it is underwater. The area is heavily obscured for 1 minute, although a significant current can disperse the ink. After releasing the ink, the octopus can use the Dash action as a bonus action.
Okay, cool!Lets say someone is fighting underwater and tries to blind an opponent with a vial of ink.
Sure.Can this work?
Open the bottle and let the ink cloud up the water. IRL, you would likely want ink made for rapidly clouding a large area of water and a mechanism for quickly squirting it out. But if a players said that their character was pulling out a vial of ink to cloud the water, I would just go with rule of cool. Mechanically? Treat it like a darkness spell, but even magical light or sight wont see through it because you are actually obscuring with a chemical, adding light is not going to help.How would it work?
Is there any precedent for this?