Rabbits have limited color vision, but they are able to distinguish color and do not see purely in black and white. Rabbits lack the ability to see red, but they can see shades of green, yellow and blue.
In animals like rabbits, color is perceived by special cells in the eye that are able to absorb specific wavelengths of light and relay that information to the brain. Humans have three different sets of such cells, called cone cells. Human cone cells pick up shades of red, blue and yellow-green, respectively. Rabbits appear to have only have two different kinds of cones. They are able to pick up blue light and green light, but other colors are simply not absorbed, so they are perceived as gray.