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Whilst designing a ship the game will suggest that you fill external component bays before filling other bays.

What is the advantage to doing so?

I only know visual gimmick.

External components are much more likely to be hit than internal components by shots that get through shields and armor. This means that internal components have a little more safety, but this is not assured- a Command Center has a very small chance be the first component destroyed. External components are usually the first to go.

In designs, this is most apparent in defenses and sensors, and the external slots should be filled. The more external components you have, the less likely something critical, like the hyperdrive, will be hit while external components are still in one piece.

This includes shields- put shields in external slots, because armor is destroyed as armor. Shields in the external slots will make them more likely to be hit than the hyperdrive when armor goes down, whereas armor will already be destroyed when armor goes down.

However, it's not a major factor. A ship that puts shields in internal slots might be more survivable overall since the shields will regenerate a bit more shield HP that way.