The Outside of the Asylum is the home of Wonko the Sane. Designed to keep the outside world enclosed when he realised that it had gone mad, it was made entirely inside out, going so far as to make a visitor park on the carpet. Outside (the house, not the Asylum) are bookshelves, paintings "made to soothe," and some semi-circular three legged tables. The roof is decorated with upward hanging chandeliers. Wonko refuses to ever leave the Outside of the Asylum.
It is inside the Outside of the Asylum (if that hasn't confused you) that there is a garden area, with small trees, brick walls, and some well kept gutters.
The Outside of the Asylum is in California, looking over the Pacific Ocean.