Five sequences are effected by the outdoor/indoor split:
1. The split begins in the carnival, when the Barker calls the audience to "Come Look at The Freak" - the young Phantom caught in a cage. In the Outdoor track, the carnies take the cage and lead the audience into a small room with an organ next to the carnival room, and the act and the phantom's escape takes place there, with the Phantom watching most of the action from a catwalk among some of the audience members.
In the inside track, this scene takes place on the mainstage of the carnival room.
2. "Learn to Be Lonely", outdoors, takes place in an attic room with large glass windows looking out onto a black brick wall. This allows for the phantom to appear from behind the windows as he watches his younger self. Christine and Meg then come in to talk about the Phantom and the upcoming performance of Il Muto before the Phantom guides the audience into the fly space of the theatre through a large set of bay doors at the back of the room. (The fly space is the same set in both paths.)
Indoors, this scene takes place in a small room a flight of stairs up from the carnival that is decked out as costume storage. This is the ONLY set that is not used in the outdoor track. The audience is split up and taken two separate routes up the stairs to the fly space. Some follow the Phantom, some Madame Giry.
3. After the scene in the flies , the outdoor audience goes upstairs to the roof for All I Ask of You.
Indoors, they go through the big bay doors into the Attic where "Learn to be Lonely" took place outside. Christine and Raoul start the song "on the roof" outside the glass windows (I don't think they are actually outside?) before coming inside, and the phantom moves from inside, watching them among the audience, to appearing outside the windows.
4. Outside, the audience moves down the stairs into the graveyard set for wishing you are somehow hear again and Wandering Child.
Inside, the audience is directed to the room where "Come Look at the Freak" happened in the outside track - in this variation, a tomb stands in the center of the room and the hanging striped tent for the circus set are stripped away, revealing a cross and altar. The Phantom is on the catwalk above for this scene and he is lit so that the audience below him, who may or may not be able to see him depending on where they are standing, sees his shadow cast on the back wall of the "church". After this, the audience is guided to walk through the outdoor graveyard, where the violinist is standing in the angel statue and watching them pass, to go down the stairs for the dressing room sequences, and the outdoor/indoor paths converge back together for the rest of the night.
A helpful phan on the masquarade subreddit made a very helpful diagram of these two paths, which can be found here:
https://www.reddit.com/r/MasqueradeNYC/comments/1nj2s6h/spoiler_differences_between_masquerade_roof_and/
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