Backyard
I used to live in a house that had a backyard that was bordered by tall/established laurel hedges on the south and west sides and a tall wood fence on the north side. The east side of the backyard was obviously flanked by the house. There were no tall trees in the backyard so the backyard benefitted from abundant sunshine. It was ideal for nude sunbathing, which I enjoyed frequently. Some years later, the neighbor to the south had a significant addition built to his home and added a second story that included a master bedroom with a balcony that looked out to the west/their backyard, as well as mine. The balcony had a chaise lounge that she would sit on and read.
This resulted in my having to limit my nude backyard time to when the neighbors were away at work. This was not a big deal, since I've worked from home - well before the time of Covid. Nevertheless, there were days when the neighbor's wife would stay home (wasn't sure why). She did not have a consistent schedule/pattern as to when she would choose to stay home, so I was not able to plan around that. Furthermore, even during summer, availability of days of sunshine in the Puget Sound region can be unpredictable. So you have to make the most of the sunny days that Mother Nature gives you.
In any case, one day I was conducting yard work in my backyard nude in my backyard when I heard the door to the neighbor's balcony open. When I first heard it, I somewhat panicked and run indoors. But then I just resolved to continue doing my yard work. I didn't look up in that direction but I know that she saw me. I also noticed through later side glances that she was just relaxing and reading her book while lounging on her chaise lounge. When I finished my yard work, I simply walked indoors.
Later that day, I was out watering my front yard and the neighbor and his wife (who had seen me nude earlier) were going for an early evening walk and passed by. Not sure if she had told her husband or not when he got home from work. The neighbor's wife was normally not very friendly toward me but when she passed by that time she totally waved hello at me and gave me somewhat of a 'knowing' look.
I had a similar experience a few years ago. I have a very private garden, but in one corner, a big storm toppled the old fence in the corner of the garden from the end or our garages to the corner, probably a total distance of 20 feet. We had put up a lattice trellis and a vine was growing on it quite successfully. One day I was sunbathing and I heard her come and start trimming the vine. I suddenly heard her talking to her son and she obviously saw me! I quietly moved out or sight.
Later that day we were both in our front gardens and she mentioned seeing me and thinking how wonderful to be able to do it!
Well it sounds to me like you had a better reaction/response.
If my neighbor's wife had mentioned to me that she had seen me and would want to engage in outdoor nudity (on her own or with her husband in her own backyard), I would have been elated. How many of us encounter fellow nudists by chance - especially next door neighbors?
I had a similar experience but rather humorous. In a previous home we lived in a subdivision where the homes were close together. We had a pool in our backyard and I would always use the pool nude and also sunbathe nude. My neighbors installed a trampoline right up against the wall on their side and their children used to jump up and down on the trampoline and look over the fence. Finally after a week or so of this, l saw their mother in the front yard and casually mentioned to her what they were doing. The trampoline was moved that night LOL.