I never really thought about where I look where I'm outside...

It really depends. If I am in a new unfamiliar place I look around, if I am out hiking I look around and look down occasionally to avoid stepping into something, when I am jogging I stare into the distance. When I am stressed I stare into the distance ignoring the surroundings. I like observing life in general. Birdwatching and photography are my hobbies so I am often looking around for birds (even in big cities) or interesting things to make pictures of.

I don't avoid eye contacts unless the people I am approaching look shady.