An image processing apparatus which is capable of preventing the display of an operation item, such as an icon, from hindering user's viewing an image which the user desires to view. A distance and position-detecting section and a system controller detect a distance between a screen and an operation element. The system controller displays at least one operation candidate item on the screen when the detected distance becomes not larger than a first threshold distance. Further, when the detected distance becomes not larger than the first predetermined threshold distance, the system controller changes a display form of the operation candidate item depending on the detected distance and displays the operation candidate item as an operable item.