That sounds generally possible, but it won't be one project. It will be several projects that all fit together.
First you'll need to choose a type of display and get comfortable working with it. You could make a 12"x12" display from two 64x32 5mm RGB LED matrices:
https://www.adafruit.com/product/2277
Generating the control signals for those will probably take a full-scale computer like a Raspberry Pi.
You could also use four 16x16 NeoPixel matrices:
https://www.adafruit.com/product/2547
The resolution is lower, but NeoPixels have their own internal LED controller and don't require continuous updates. For a static image like an album cover you'd only have to set the pixel colors once. A microcontroller can handle that without too much trouble.
To split out audio frequencies for a visualizer you'll need Fast Fourier Transforms, or FFTs:
https://learn.adafruit.com/trellis-m4-a ... and-filter
https://learn.adafruit.com/mini-led-mat ... visualizer
You can do those with a RasPi or a fast microcontroller.
There are digital audio protocols that carry information that identifies songs, and if you use those you'll need to find or write code that knows how to use that information. If you want to identify songs from the audio itself, you'll need FFT signatures and a massive database able to associate them with metadata.
You'll need to learn how to work with each piece, and will probably need to test a few options for each feature you want to find out which one works best for you. Instead of trying to make the whole system as a single project, start small and make small improvements. Once you have the basics it doesn't take long to build things that are more complicated. But then you need time to work with the system to decide what you want to do next.
