Basically there are two answers; the most convenient place and what looks best. What I did was look around the neighborhood to see where other people put their’s.
In our city, most people placed the shed at the back end of their property, just inside the property line. Others put it closer to the house depending on the depth of the back yard. I put mine, a steel shed, at the end of my driveway. This seemed most convenient at the time, five decades ago, because I had a corner lot with no garage, and yard space on three sides of the house. About twenty years later I moved it to the back end of the lot. The problem with that location was accessibility during the few winter months with a few feet of snow. Others have a single or double
garage so the snow blower, bikes, etc. could be conveniently stored there.
Some older more crowded neighborhoods have a very tiny back yard so that the driveway, if there is one, might be the only space left for a small shed.
The shape of your back yard, the slope if any, or even the desired location of a vegetable plot, may be another deciding factor. If you have a very deep back yard,
you may want the shed closer and the garden plot behind. Also, if you already have a detached garage, you will probably want the shed some distance away.
Another consideration is the design of the shed you plan to build. Some designs just look better in the corner of the lot, particularly if it’s a diamond shaped shed. But a shed with a sloping roof might look better next to a wall or another building.
Another deciding factor for shed location is the presence of trees and shrubs. If a shrub is too large to relocate, the shed would need to be placed in the most desirable
place. You would hardly cut down a tree that’s in the wrong place, unless it’s a very small one, but a shrub is easier to dig out and discard if its too big to save.
If you have a good relationship with your neighbors, or at least a “hello or a hand wave” relationship, it might be satisfying to get their input to your shed building plans. It could help to break down any barriers and make them feel good about you. Friendly neighbors can certainly
be an asset.