There are a couple of ways to get from Indy to Bloomington. It's an hour drive. You can rent a car or you can take the Bloomington shuttle --
Bloomington Shuttle Service. It's a very easy drive.
It's a healthy walk from the theatre building to the surrounding town but you won't have any challenges doing it if the weather is OK. Just nab a campus map and you basically just walk through the older part of the campus and it will take you right to the very charming town of Bloomington. Should take you 10 minutes to walk.
There are a variety of restaurants throughout the town -- the typical sports taverns with good hamburgers, ethnic restaurants, some chains and other local choices. Most are pretty decent. A great place for a B-Town breakfast/brunch is the Village Deli smack dab in the middle of Kirkwood Rd. It's very fun to go there before a game -- very lively and very IU!! Food is great! Be sure to wear red!!
The campus is beautiful and B-Town is very charming. You'll have a great visit.