The two sets of light sensors are on each end. They are "looking" up to the sky which is the source of light. When the pellet passes over the two sensors it creates a shadow (blocks the light) and that triggers the measurement, The two sensors require close to uniform level/intensity of light source. That's why there are two "shades" on top of the unit over the sensors as to diffuse the changing light intensity as the sun and clouds alternate above the unit outdoors. Outdoors lighting will be more unreliable because of light saturation and clouds moving in than indoor/artificial lighting made for your unit. Use a good battery.
The unit when used indoors requires a light source (non-fluorescent) with a steady voltage or a high-enough frequency that is flicker-free (often you cannot see the flicker with plain eyes).
When you shoot towards the target that unit should be parallel with the path of the pellet towards the target. If your target is low and you are shooting from a height, the unit needs to tilt at a slight angle parallel with the pellet's path. You would likely need a tripod to hold the unit at that angle. And you also need a very steady hand with the airgun shooting very close to the unit (not recommended), or you need to put the airgun on a rest/tripod.
The pellet should pass parallel over the unit's top about the same distance above both sensors and at the middle of each sensor row.. Some people place a mark or a white tape marking the middle of each sensor where the pellet's path should be. Can do the same on the sides with the rods holding up the shade. The manufacturer should have their guidance in the manual, but I have luck 2-3 inches above the sensors.
Indoors I place the unit on some books and also use books for the aigun to make sure that the barrel ans the unit are parallel and the pellet path is centered over the two sensors and passes about 2-3 inches above them. Basically, you want to make sure that the barrel cannot move lower and hit the chrono.
Some people, usually those who shot up their chrono at least once already (like me), place a protective cover in the front. Some use thick plexi, but wood should work also. Make sure it does not pose a ricochet hazard.
https://www.pyramydair.com/blog/2016/03/chronograph-tips-2/ https://precisionrifleblog.com/2012/07/20/chronograph-accuracy-tips-15-practical-tips-to-increase-accuracy-reliability/