Lee considers (local) frames over open subsets $U \subset M$. These are $n$-tuples of smooth vector fields $E_i : U \to TM \mid_U$ such that $(E_1\mid_p,\ldots, E_n\mid_p)$ forms a basis of $T_pM$ for each $p \in U$. Let us call $U$ a frame domain if there exists a frame over $U$. Coordinate domains are always frame domains, but in general there are more frame domains than coordinate domains. For example, if $TM$ is trivial (e.g. for $M = S^1$), then $M$ is a frame domain though in general not a coordinate domain.
Now consider a pointwise orientation on $M$, i.e. a family $\omega$ of orientations $\omega_p$ of $T_pM$, $p \in M$. As Lee writes
By itself, this is not a very useful concept, because the orientations of nearby points may have no relation to each other.
We can use frames $(E_i)$ over open $U \subset M$ to relate all orientations $\omega_p$ with $p \in U$. Let us say that $\omega$ is compatible with the frame $(E_i)$ if the basis $(E_1\mid_p,\ldots, E_n\mid_p)$ of $T_pM$ represents the orientation $\omega_p$ for all $p \in U$. Of course this property depends on the choice of the frame. In fact, for each frame domain $U$ there always exist frames $(E_i)$ over $U$ such that $\omega$ is not compatible with $(E_i)$: Either there does not exist any frame $(E_i)$ such that $\omega$ is compatible with $(E_i)$, or such a frame $(E_i)$ exists. In the latter case we can consider the frame $(E'_i) = (-E_1,E_2,\ldots,E_n)$ and see that $(E'_i\mid_p)$ always represents the opposite orientation $-\omega_p$ in which case $\omega$ is not compatible with $(E'_i)$.
Lee does not use our above terminology. He expresses the same fact by saying that $(E_i)$ is positively oriented. In my opinion this wording may be misleading because it suggests that there exists something like a positive orientation on $T_pM$ in an absolute sense. What Lee really means is this: For each $p \in M$ we have chosen an orientation $\omega_p$ of $T_pM$ and declare it to be the positive orientation. This is of course an arbitrary act. I think it would be better to say that $(E_i)$ is positively oriented with respect to the given pointwise orientation $\omega$.
Lee calls a frame $(E_i)$ negatively oriented if the basis $(E_1\mid_p,\ldots, E_n\mid_p)$ of $T_pM$ represents the opposite orientation $-\omega_p$. Moreover, a frame is called oriented if it is positively or negatively oriented.
Lee then defines a pointwise orientation $\omega$ to be continuous if for each $p\in M$ there exist an open neighborhood $U$ of $p$ and an oriented frame over $U$. Of course this is equivalent to requiring that for each $p\in M$ there exist an open neighborhood $U$ of $p$ and a positively oriented frame over $U$. In fact, if we have a negatively oriented frame $(E_i)$, then $(E'_i) = (-E_1, E_2,\ldots, E_n)$ is a positively oriented frame.
In our terminology this means that for all $p\in M$ there an open neighborhood $U$ of $p$ and a frame $(E_i)$ over $U$ such that $\omega$ is compatible with $(E_i)$.
And here is the question: Why does Lee use the phrase continuous pointwise orientation?
Formally we can use each frame $\eta = (E_i)$ to define $$(\eta,\omega)^* : U \to \{+1,-1\}, (\eta,\omega)^*(p) = \begin{cases} +1 & [\eta_p] = \omega_p \\ -1 & [\eta_p] = -\omega_p \end{cases}$$ Here $\{+1,-1\}$ is regarded as a topological space with the discrete topology.
Let us call $\eta$ a constant resp. continuous frame with respect to $\omega$ if $(\eta,\omega)^*$ is constant resp. continuous. Clearly constant frames are continuous, and continuous frames over a connected $U$ are constant.
Therefore a pointwise orientation $\omega$ is continuous in the sense of Lee iff for each $p\in M$ there exists a constant frame over some open neighborhood $U$ of $p$. Such a frame is in particular continuous, and certainly this is why the phrase "continuous pointwise orientation" is used. One could alternatively call a pointwise orientation to be constant if for each $p\in M$ there exists a constant frame over some open neighborhood $U$ of $p$, but perhaps the use of the word "constant" would be a bit irritating in this context.
Lee's definition is clearly equivalent to this:
A pointwise orientation $\omega$ is continuous if for all $p\in M$ there exist a connected open neighborhood $U$ of $p$ and a continuous frame over $U$.
What does it mean that a frame $\eta$ over an arbitrary open $U$ is continuous? Since each manifold $M$ is locally connected, all connected components of $U$ are open (see e.g. here). Hence $\eta$ is continuous on $U$ iff $\eta$ is continuous on each connected component of $U$. The latter means that $\eta$ is constant on each connected component of $U$.
Therefore, if there exists a continuous frame $\eta$ over $U$, then there also exists a positively oriented frame $\eta'$ over $U$. Since $\eta$ is constant on each connected component of $U$, we can simply switch $\eta \mid_p = (E_i \mid_p)$ to $-\eta \mid_p = (-E_1 \mid_p, E_2 \mid_p,\ldots, E_n \mid_p)$ on each connected component of $U$ on which $\eta_p = - \omega_p$.
We conclude that the following is also a valid definition:
A pointwise orientation $\omega$ is continuous if for all $p\in M$ there exist an open neighborhood $U$ of $p$ and a continuous frame over $U$.
Let us close with
Theorem. Let $\omega$ be a pointwise orientation on $M$. The following are equivalent:
$\omega$ is continuous.
All local frames on $M$ with a connected frame domain are continuous (or, equivalently, constant).
All local frames on $M$ are continuous.
Proof. 2. $\implies$ 1. is obvious because each $p \in M$ lies in a connected frame domain.
$\implies$ 2. follows from the theorem in Proving that every local frame on a connected domain has either positive orientation either negative orientation.
$\Longleftrightarrow$ 3. is clear from the above considerations (look at the components of $U$).
Therefore we get the following:
Pick any frame domain $U$ and any frame $\eta$ over $U$. Then $\omega$ is compatible with some frame over $U$ iff $(\eta,\omega)^*$ is continuous. Therefore we can reasonably define that $\omega$ is continuous over a frame domain.
If $M$ is covered by frame domains over which $\omega$ is continuous, it makes sense to say that $\omega$ is (globally) continuous.