Most people host their graduation party in their home and/or backyard.
Some people hold the party inside with their deck or yard opened up for any guests who want to go outside. And some people like to have everything outside, including the food.
Any option you choose is perfectly fine but before you decide take a look around your house, deck and yard and determine where you would serve food and beverages, where you would display your grad's mementos, and where you want your guests to mingle.
Think about if you need tables and chairs. Check with your neighbors, friends and church to see if you can borrow enough from them. If not, contact your local rental company early to reserve what you need.
Consider the time of day for your party and where the sun will be shining at that time. Do you need a tent to shade your guests?
Another important consideration is where you want your guests to enter the party. Do you want them to come through the front door? Or do you want them to come around to the back of your house?
Use balloons and yard signs to make a path leading your guests into the party.
Do you need or want to make improvements to your home or yard before the party? Many people find their graduation party is a great motivator to complete projects they've been putting off.