Usually but not always. I translated it as "Do you eat in or out?", which is perfectly good English, but wasn't accepted.
Based on the comments, it looks like some people aren't familiar with the expressions "eat in" (for having a meal at home) and "eat out" (for going to a restaurant). Those are pretty standard in the USA, and our local delivery service is called "eat out in", but maybe they aren't used in the UK or elsewhere. In Italian, eating in would always be "a casa", but eating out would often be "fuori".
Yeah, I'm gonna say that "Do you eat at home or outside?" is not the kind of English that anyone would ever use.
This is asking one of two questions, contrasting two distinct sets:
- Do you eat at home, or go out to eat (at a restaurant)?
- Do you eat inside the house, or outside (e.g. in the yard)?
The first would be pretty natural as "Do you eat out or at home?" or "Do you eat at home or go out?" - but "Do you eat at home or out(side)" would sound unnatural.
The second would be "Do you eat inside or outside?" or "Do you eat in the house or outside?" - but "Do you eat at home" presupposes that the alternative is away from the home, where "outside" in English presupposes close to the home, at least in this context.