Translation:Arukh ha-Shulchan/Orach Chaim/2
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We have already written that even when one is in the most secluded setting, one must act modestly, because the Holy One Blessed Be He fills the entire world with His Glory.
Therefore, if one slept naked, one should not rise from his bed naked, but should rather dress while lying down; one cannot even dress (naked) while sitting, because (if one does so), half of his body will be exposed. (The proper way of dressing is as follows:) one should take his clothing, enter his head and arms in lying, thus when he arises he is dressed.
The same when he go to sleep and put his clothing off, he may not do this standing or sitting- but lying and covered. And he may put the clothing near so when he wakes up he won't have to sit exposed.
And this is of the modesty trait.
And he may not say- "who sees me?"- because His glory full all the earth. (And it doesn't matter if his feet bare, nor in the shower).
He may keep his clothing straight- that the inner side won't be turned out and then the stitches and fringes of the clothing will be seen and he will be disregarded in the eyes of people.
And this was said about the "chaluk"- a clothing that has little difference between the outer and inner sides- so it's simple in other clothings.
The way a man have to keep from people gossip, he may keep from people thinking bad of him.
In tractate Shabbath we learn: "Who is Talmid Chaham? the one who keep his clothing straight to turn it". I.e. even if he has already gotten dressed and he now sees that it's inside out, he turns it right side out. And a regular man is not careful to do so. But the best is that everyone will do so. And if for "Chaluk" it is so, -- then how much more so, for other clothes.
In Bava Batra we learn: "How is the clothing of Talmid Chaham? a garment such that the body is not seen under (through) it.
Rashbam explains it's for people going barefooted and they need long clothing so his feet won't be seen. In our days it's irrelevant.
But Rambam (Maimonides) in the fifth chapter of Laws of Human Dispositions explains that the Talmud refers to thin clothes, that are so thin that the body can be seen through them.
We also learn there: "How is Tallit of a Talmid Chaham? A long one thus the Chaluk is not seen beneath it "Tefach" (about 8 cm.). "Tallit" is the upper cloth and the meaning is that the lower cloth won't be longer than the upper.
Any Talmid Chaham who has "Revav" on his clothing, i.e. fat or grease or any kind of dirt - deserves capital punishment because he makes people hate the Torah. (Shabbath there). But his clothes will be clean.
And Talmid Chaham may not wear patched shoes such that one patch is on the other, for he will be disgraced, except for the winter that he goes in mood.
These are the words of Rambam there, in the ninth law: "The clothes of a Torah scholar are nice and clean clothes, it (is therefore) forbidden that there should be found on his clothes a stain, grease, or (anything) similar. He should wear neither purple clothes, that everyone looks at, nor the clothes of paupers, which shame their wearers.