When you see the text above the NPC's heads at a Hangout Spot, they are having a conversation. If you wait and listen to the entire thing—which doesn't last long—you may receive a keyword, but you also may not.
These keywords may be something like good coffee, or present, or something else pretty random. We believe these are used for starting Side Cases when they become available. These are the sole purpose of Hangout Spots.
We got a keyword for "noise" from listening to a conversation when walking past. This led to us investigating where the noise came from, which ended up being a side case. Even if the keywords you obtain are useless when you get them, they will be used eventually as you progress through the game.
Related: How to farm SP early in Lost Judgment
For those who are unsure what a Hangout Spot is. When exploring the two cities of Lost Judgment, there's a ton of triangle greenish speech icons on the map. If you press L1/LB, it will bring up the Display Icon Legend, called Hangout Spots.
If you go to one of them, there is nothing remotely interesting there, just people talking, and who has the time to listen to that when you're attempting to solve a murder case. But these Hangout Spots do have a purpose, but the game doesn't seem to explain what.
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What are Hangout Spots in Lost Judgment – What do they do
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