She's shy as could easily be expected from a modest woman like herself. The camera would have been on a tripod and huge, as were the boxy motion picture cameras from that era. A man would have been busily turning the crank as well. That type of motion is eye catching. She would have never missed the spectacle off to her left. She is, as WoundedKing suggested above, covering her face in modesty. That she didn't tip her hat to the side to cover more is even perhaps more surprising. Furthermore, I can't detect any object in her hand. How else would an elderly lady hold her hand up to her face? Maybe she has arthritis. BTW, I don't see much to deter the obvious idea that she is a SHE and not as the narrator would suggest a man, I think that is a red herring designed to increase the spooky factor, and ad to the suspension of disbelief in his tall tale.
ABE:
Let's face it the narrator is really biased, He's had a year to cook up a story. This is sensational fluff for people that want to believe. Many if not all of his statements are truly non objective. There's a slant and an element of "pulling the audience in." The guy must be a great fisherman.
Edited by CosmicChimp, : More after thought.