To make input-output pin of sensor high from mcu is it better to give logic high from mcu or making the mcu-pin input with pull-up?
On page 5 of the datasheet it says "To avoid signal contention the microcontroller must only drive DATA low. An external pull-up resistor (e.g. 10kΩ) is required to pull the signal high" - I guess it means that you don't want to have the possibility that your micro drives it high while the sensor drives it low, giving a direct short.