These are interesting questions. I think at least some, if not most, late 19th century Americans would have had a basic understanding of astronomy given the emphasis on classical education even in grade school, although the amateur study of it was mostly a hobby of privilege, as telescopes were expensive (see relevant portions of the index in this rather long article,
http://lib.dr.iastate.edu/cgi/viewcontent.cgi?article=2773&context=etd). As Wichita pointed out, those in the West used the sky as a guide, sort of their GPS. Myths might have abounded still, but presumably enough was known to not jump to too many conclusions.
I once read the Native Americans had an entire colorful mythology built around astronomical events. A quick search yielded the following:
"The eclipse myth told by the Hupa, a Native American tribe from northern California, has a happ[y] ending.
The Hupa believed the moon had 20 wives and a lot of pets, says Krupp. Most of those pets were mountain lions and snakes, and when the moon didn't bring them enough food to eat, they attacked and made him bleed. The eclipse would end when the moon's wives would come in to protect him, collecting his blood and restoring him to health, Krupp says.
To the Luiseño tribe of southern California, an eclipse signaled that the moon was ill, says Krupp. It was tribe members' job to sing chants or prayers to bring it back to health."
(Excerpted from
http://news.nationalgeographic.com/news/2014/04/140413-total-lunar-eclipse-myths-space-culture-science/ )
Given our boys' practicality, I doubt they would have given too much credence to mythology or been spooked by a red moon, whether or not they understood the actual cause. However, let us not forget the hysteria associated with the appearance of Halley's Comet in 1910 (
http://www.moonphases.info/the-great-comet-scare-of-1910.html ). The following has an interesting note regarding Mark Twain and Mr. Halley's Comet --
http://www.wired.com/2009/05/dayintech_0519/ .
Finally, those familiar with the early years of Bonanza might remember the episode, "Look to the Stars," about the young Albert Michelson, who grew up in mining camps in California and Nevada and went on to win the Nobel Prize for Physics. It's an interesting look at how those unfamiliar with astronomy might have reacted in that time and place (although it has a specific bent unrelated to this topic). (
http://en.wikipedia.org/wiki/Albert_Abraham_Michelson )