Outside the Observatory is an unofficially named section of the Observatory. It is the little garden area out the front of the main tower, and can be accessed through the main door. One of the chains connecting the Towers to the surrounding cliffs attaches to this area, and Aeron uses this chain to travel to the Towers.
There is a little section out here in which flowers will be planted and then grow over time when you give Elena flower seeds. There are some trees around the area, and there is a clothesline near the tower entrance. If the curse timer gets too low, however, the nature out here will begin to die. The leaves turn brown and eventually fall off, and the flowers will die, giving you an excuse to give Elena more seeds. It becomes a very dark, gloomy place, with a sense of depression in the air.
Elena can be found here at times during the day, either hanging sheets on the clothesline or staring at the flowers or the Towers. She can also be found singing here early in the game, although she stops after a while as it "reminds her of that time".