A head-mounted device may include a main housing portion with displays that display images and optical modules through which the images are viewable from eye boxes. A light seal may be coupled to the main housing portion and may surround the eye boxes to prevent outside light from reaching the viewing area of the head-mounted device. The light seal may include inner and outer fabric layers. The outer fabric layer may be a seamless tube of knit fabric. The inner fabric layer may be an opaque fabric that lines the inner surface of the outer fabric layer. The outer fabric layer may have a modified bird's eye pattern that incorporates alternating knit stitches and tuck stitches. The tuck stitches allow the outer fabric layer to stretch in the lengthwise direction of the fabric to prevent buckling when the light seal is pressed against the user's face.