Behind the rear seat - and in such a location that if it were mechanically shorted out, a gassing or catching fire battery are probably going to be a good way down the list of things to worry about - especially as the fuel tank would already have been squashed like a tin can and would have probably dumped it's contents over the exhaust. It's a good ways inboard in a very solid location.
It's also in a pretty well sealed location under a separate locking gasket sealed cover, the compartment has an external vent. The car is also far less well sealed than modern ones, so gas buildup is less likely - as soon as you start moving there's pretty good airflow through the car, even with the fan off and windows closed. Unlike in a Xantia!
With a 45A alternator, it also lives a HUGELY easier life than the batteries in modern cars I reckon. I've never given it a second thought to be honest.
Series Land Rovers have the battery under the passenger seat, and MGBs also have it behind the seats (2x 6V ones in fact I think). Jag XJs and Rolls Royce Silver Shadow and Spirit all have the battery in the boot.
It's an increasingly bad idea in modern cars though given how much harder they work - *especially* in anything with stop-start systems...