This changes nothing

Why are your pants down at a urinal?

Boy are you gonna go crazy when you hear about shorts

I guess neither of you have experienced boxers before

Have YOU experienced boxers today

Is there urinal etiquette? Cause I always wondered how you stop from peaking at the others guys junk, like it's right there what do you do

Yup
The etiquette is stay as far away from each other as possible
Also why would you want to peek?

It's not that you want to, it's just that there's no walls and they're right there and eyes are traitors. At least that's what I imagine could happen I don't have a penis so I wouldn't know

If a guy standing next to you started peeing would you look at his junk?

I'd probably ask what the hell he was doing first but no, I don't think I would

Oh also, the second rule of courtesy in male toilets is not to make eye contact

Third is about communication. You can talk to guy at a urinal only if you are also at a urinal. You can talk to a guy not at a urinal only if you also not at a urinal.