In "His Last Vow" we see a padded cell is a part of Sherlock's mind palace. Going by the Method of loci, the padded psych ward cell isn’t a mind-fabrication; it’s an actual place he’s been, somewhere in his past.
Prompt: When Sherlock was younger he was admitted in a mental hospital (for whatever reason and for however long, is your choice).
Mental Ward
Prompt: When Sherlock was younger he was admitted in a mental hospital (for whatever reason and for however long, is your choice).