Keep in mind that the question interacts with your data definitions. If "field" has been defined as "Not Null" then you don't have to worry about null data and should choose #1 for readability. Similarly, if the field is nullable but you use an "IsNull" function when doing your query:
Select IsNull(Field1, '') as Field1 From DBTable Where...
then, again, you should choose #1 because you still don't have to worry about null. Of course, this assumes that you would WANT the null value to be masked by the empty string. If you want to test against null because it is an error condition then you'd have logic like:
if (nwReader.IsDBNull(nwReader.GetOrdinal("Field1")))
*throw exception or otherwise handle null condition
string aStr = (string)nwReader["field"];
This last case, however, is not really good practice. If null is an invalid value - an error condition - then you should rule it out in your DDL.
In the end, though, I always go for option #1 because I think it leads to better readability and it forces me to make my null handling explicit.