Consider the function $f:\Bbb R\setminus\{0\}\to\Bbb R$ given by $$f(x)=\frac{x^2}{x}.$$ Clearly, $f$ isn't defined at $0,$ and is continuous. Moreover, $\lim_{x\to0}f(x)$ exists.
By contrast, $g(x)=\frac{|x|}x$ has the same domain and is continuous, but $\lim_{x\to0}g(x)$ does not exist.
So, clearly, we can talk about limits at points outside of a function's domain, sometimes. However, when we talk about continuity, we cannot do this. A function can only be said to be (dis)continuous at points of its domain, sonce it doesn't exist outside of its domain, so can't be said to be anything at all there.
Added: The issue ultimately comes down to the metric we're using for the domain. First, let me address this in the context of a specific example I gave above, namely: $X=Y=\Bbb R,E=\Bbb R\setminus\{0\},$ $f$ defined as above, $d_X:X\times X\to\Bbb R$ given by $d_X(x,y)=|x-y|,$ $d_Y$ defined similarly, and $d_E$ the restriction of $d_X$ to $E\times E.$
Now, we can say that $f:E\to Y$ is continuous on $E$ with respect to the metric $d_X,$ meaning that $$\forall\epsilon>0,\forall c\in E,\exists\delta>0:\forall x\in E,d_X(x,c)<\delta\implies d_Y\bigl(f(x),f(c)\bigr)<\epsilon.$$ We can also say that $f$ is continuous on $E$ with respect to $d_E,$ simply by replacing "$d_X(x,c)<\delta$" with "$d_E(x,c)<\delta$" in the statement above. This should come as no surprise--after all,, for any $c,x\in E,$ we have $d_E(x,c)=d_X(x,c)$ by definition of $d_E.$ In that sense, then, it makes no difference whether we consider the domain of $f$ as the entire space, or simply a subset of some larger space. When talking about limits, however, it is a different story.
Clearly, for any $c\in X,$ we can say that $\lim_{x\to c}f(x)=c$ with respect to $d_X,$ meaning $$\forall\epsilon>0,\exists\delta>0:\forall x\in E,0<d_X(x,c)<\delta\implies d_Y\bigl(f(x),c\bigr)<\epsilon.$$ Also, for any $c\in E$ (Note: this is the part that's different), we can say that $\lim_{x\to c}f(x)=c$ with respect to $d_E,$ by replacing "$0<d_X(x,c)<\delta$" with "$0<d_E(x,c)<\delta$" in the statement above. It seems like a superficial change, so why can't we say it for all $c\in X$? Well, this is simply because if $c\in X\setminus E$ (that is, if $c=0$), then $d_E(x,c)$ is undefined for all $x.$
More generally, suppose $\langle X,d_x\rangle,\langle Y,d_Y\rangle$ are any metric spaces, $E\subseteq X,$ $d_E$ the restriction of $d_X$ to $E\times E,$ and $f:E\to Y.$ Then $f$ is continuous at a point $c\in E$ with respect to $d_X$ if and only if it is continuous at $c$ with respect to $d_E.$ So, continuity doesn't change if we start thinking in terms of $\langle E,d_E\rangle$ instead of $E$ being a part of a larger space. However, given $c\in X\setminus E,$ while we may be able to talk about $\lim_{x\to c}f(x)$ with respect to $d_X,$ we will certainly not be able to talk about $\lim_{x\to c}f(x)$ with respect to $d_E.$ So, if we start thinking in terms of $\langle E,d_E\rangle,$ then we may lose some limits of $f$ that we had when thinking of $E$ as part of a larger space.