React Hook recipe from https://usehooks.com. Demo: https://codesandbox.io/s/23jk7wlw4y

## use-onclick-outside-example.jsx
import { useState, useEffect, useRef } from 'react';

// Usage
function App() {
  // Create a ref that we add to the element for which we want to detect outside clicks
  const ref = useRef();
  // State for our modal
  const [isModalOpen, setModalOpen] = useState(false);
  // Call hook passing in the ref and a function to call on outside click
  useOnClickOutside(ref, () => setModalOpen(false));

  return (
    <div>
      {isModalOpen ? (
        <div ref={ref}>
          👋 Hey, I'm a modal. Click anywhere outside of me to close.
        </div>
      ) : (
        <button onClick={() => setModalOpen(true)}>Open Modal</button>
      )}
    </div>
  );
}

// Hook
function useOnClickOutside(ref, handler) {
  useEffect(
    () => {
      const listener = event => {
        // Do nothing if clicking ref's element or descendent elements
        if (!ref.current || ref.current.contains(event.target)) {
          return;
        }

        handler(event);
      };

      document.addEventListener('mousedown', listener);
      document.addEventListener('touchstart', listener);

      return () => {
        document.removeEventListener('mousedown', listener);
        document.removeEventListener('touchstart', listener);
      };
    },
    // Add ref and handler to effect dependencies
    // It's worth noting that because passed in handler is a new ...
    // ... function on every render that will cause this effect ...
    // ... callback/cleanup to run every render. It's not a big deal ...
    // ... but to optimize you can wrap handler in useCallback before ...
    // ... passing it into this hook.
    [ref, handler]
  );
}