You can access the camp menu from the item wheel. You can’t camp while within a town or city proper and you can’t camp on the exact spot where you selected the option. The game will automatically select a safe, convenient place where your camp will be built. You can only use this option when you’re not in immediate danger. You can even set up camp in a hostile state where you’re wanted. Setting up camp is free and doesn't consume anything so use it whenever you need to.
Upon setting up a camp, you’ll automatically have a campfire, a small grill to cook/craft, an a sleeping bag. In some instances, a tent will be automatically erected for you. Once your camp has been set up, you can actually leave it and free roam. You can fish if you’ve set up camp near a body of water, hunt, or just do whatever you want. While you can possibly leave your camp, it’s recommended to tear it down when you’re about to resume your activities.
When you’re in your camp, it’s always a good idea to sleep since it restores Arthur and his horse’s gauges and cores for free.
1. Escape from a tight, inconvenient area. Since camping will take you to a nearby safe, convenient spot.
2. Recover your horse. If ever you can’t get to your horse for some reason, setting up camp will teleport your horse beside you instantly. This won’t bring back a dead horse, obviously.