Not sure where you got the idea an iMac can function without an internal display. The issue is what is the default video port 0 or 1? The internal is 0 and is the default.
Now one can alter the output to go to both ports (mirroring) or extending the desktop space or even treat the output's discretely where you are presenting and need to see your notes Vs what the audience see's (mostly used with laptop setups). But that's not a test environment.
In your case testing logic boards one uses a holder to prop up the display to the side and using extension cables running between the main shell's mounted logic board. If you are working on the board alone I just used an oscilloscope to check the signals are present on the board not trying to see an image. But you could also use the extension cables as well here.
The last comment as far as a GPU being present, the CPU's Apple used in the Intel models all had built-in graphics services. Within the latter 21.5" models that's what you had, only in the 27" did you gain the dedicated AMD GPU. The older Intel models had a hybrid setup which included NVIDEA GPU's in the 20, 24 and early 21.5" models.
So in the case of the systems with MXM boards the system won't work without a working MXM board mounted. Only via the OS (technically the Firmware) can you alter which graphics engine to use. But you still need the MXM board present.