Environmental design is the process of addressing surrounding environmental parameters when devising plans, programs, policies, buildings, or products. It seeks to create spaces that will enhance the natural, social, cultural and physical environment of particular areas.
Here is a great video tutorial from BAM about designing backgrounds, based on character designs.
It also discusses how to use Perspective to help with the background designs and the benefits of Observational Drawing.
It is a good example of what you are being asked to do for Milestone 1 of Project 3.
www.dallinbifano.com/
Viktor Payatkin; Behance Link