Lyric discussion by treant 

Cover art for Inside Out lyrics by Traveling Wilburys, The

This song seems like it has political overtones, about how people look away from problems in the world... Yellow grass, yellow sky could refer to pollution and environmental degradation. "Be careful where you're walking / You might step in something rough" -- poverty, crime. "There's some things they're not saying / 'Bout what's happening out there", the media doesn't cover some things going on in the world, society wants to gloss over its problems. "Look into the future / With your mystic crystal ball / See if it ain't yellow / See if it's there at all." The future is metaphorically "yellow", sick or maybe there's no future for some. The chorus seems to say that people are feeling mixed up, "inside out", and sarcastically asks, "Don't it make you wanna twist and shout?", referring to how people seek entertainment as a distraction from reality and it's problems.

My Interpretation