You can boot from external sources.
You just have to bless it in osx, effectively setting it as the default boot volume.
This is how i completely reinstalled OSX to my 27" imac.
It was on Yosemite. I created an installer USB stick but it refused to show up in startup volumes.
I then went ahead and did this:
https://www.techwalla.com/articles/how-to-change-the-mac-startup-disk-from-the-command-line
Code:
sudo bless -mount /Volumes/Startup_Disk_Name -setBoot
I then rebooted and it booted from USB just fine, the recovery Image on the stick just took a really long time to recognize the display (couple minutes), but hey it worked.
Booting to single user mode with CMD+S (no display here, but it works) is also possible and CMD+R will bring you to the built in recovery, but if it still is 10.7 it won't have display.