In Isaiah 61: 1 we read where Jesus came to open the prison to them that are bound. What type of prison was Jesus referring to? Was he just referring to literal prison doors, or can this concept be applied to other areas of our life?

Yes its true Jesus can and will open literal prison doors, as is demonstrated in the life and ministry of Paul. In Acts 16, we see where Paul was imprisoned for casting out a demon from a girl that operated with that spirit of divination. While in there, Paul praised, and worshiped the Lord. An earthquake happened that was so violent, it shook open the prison doors. Paul could have just walked out. But his focus was not on his deliverance, but on those that were in that dungeon. This tells us that Paul did not worship the Lord just to get out of prison. He believed, in contrast to his environment, that he was already delivered. In his heart he was already free. Instead his focus was on Jesus and His desires. As a result, Paul lived his life for others. When those doors opened, Paul saw it as an opportunity to minister deliverance. When the Keeper of the prison awoke and saw the doors open, He saw this event as a death warrant. And through his fearful reasoning, was about to kill himself. But Paul intervened. He reached out and ministered the love of God to him. The prison doors in that mans heart were opened, and he received his freedom by accepting Jesus Christ as his Lord and Savior
As a result, his whole family received Jesus as well. And yes, Paul walked out of that prison unharmed.
Wounds in our heart have the opportunity to imprison us through our own reasoning and judgments. Jesus wants to open our prison doors by healing our hearts and removing those walls of unbelief that imprison us, through faith in His Word.
When God begins to bring healing to these areas of your heart, your attention becomes more focused on Him, and His desires. As the Lord brings these changes, you find that you are more concerned with others than yourself. You become an agent of the Lords glory. You become the blessing the world so desperately needs.