Learn English – What does “snaking out” mean

The construction

(verb) + it out

can be used to emphasize a verb in the sense to do that verb more, to do it until its maximum capacity, or to do it completely. So your example means

use more spaces

In other words, it means exactly what the first part says

Use spaces liberally throughout your code

There are other examples:

• Talk it out
  To talk until you are satisfied, or until you express all your burdensome emotions

• Work it out
  To work on a problem until it is finished or fixed

• Stretch it out
  To stretch something, like a muscle until it is warmed up, or a rubberband until it is about to break

• Stick it out
  To continue to do something to its end

There are other examples.

Further, the meaning I gave is not strict. Here is a special case.

cut it out

It means to stop something completely. For example, if you are trying to study, but your little brother or sister keeps asking you to play, you might tell him or her "Cut it out!"

A way out in this context means an exit (from a relationship). WordNet defines the phrase as:

an opening that permits escape or release

Moreover, ways out is simply the plural form.

The text is saying that if you are going to break up with someone, you should have a face-to-face conversation about it.