In addition to the attraction/revulsion of the two people, the second scene (and the first to a limited extent) illustrates a bit of a class distinction between Eddy's entrance into the saloon while acting familiar with all the rough and seedy characters, and McDonald's distancing herself from all the distasteful characters in the saloon, She takes a long time until she starts to be comfortable dancing and singing, and when she dips her toe in their milieu--she sees Edd's character. That starts the discomfort and revulsion again.
The depiction of the pure innocent woman is obvious part of the Code, and that has to be McDonald's basic character in every movie.