Yes it does work outside if the space has enough objects around so it can generate a model of the location. When model generation fails, it falls back to a "limited mode" where holograms follow you around instead of staying where you put them.
Oddly enough, the tracking system does not work in the dark, so you need some light to use it.
Oddly enough, the tracking system does not work in the dark, so you need some light to use it.