Meaning....

Hi,
Does this sentence mean that he (physically) stepped back and looked up?
He looked confused, paused a moment, then cautiously stepped back and looked up.

The story was about a man who had been studying English for ten years but didn't know much about slangs and informal speeches so when his friend asked him "What's up?" he looked confused.

So in this situation does stepped back means that? I found another meaning:
Step back: to temporarily stop being involved in an activity or situation in order to think about it in a new way.
Which one is suitable for here?

BTW I'll be glad if you please tell me my mistakes in my posts.

Thanks in advance,
Virginia