Outdoor Vision-and-Language Navigation (VLN) requires an agent to navigate through realistic 3D outdoor environments based on natural language instructions. The performance of existing VLN methods is limited by insufficient diversity in navigation environments and limited training data. To address these issues, we propose VLN-Video, which utilizes the diverse outdoor environments present in driving videos in multiple cities in the U.S. augmented with automatically generated navigation instructions and actions to improve outdoor VLN performance. VLN-Video combines the best of intuitive classical approaches and modern deep learning techniques, using template infilling to generate grounded navigation instructions, combined with an image rotation similarity-based navigation action predictor to obtain VLN style data from driving videos for pretraining deep learning VLN models. We pre-train the model on the Touchdown dataset and our video-augmented dataset created from driving videos with three proxy tasks: Masked Language Modeling, Instruction and Trajectory Matching, and Next Action Prediction, so as to learn temporally-aware and visually-aligned instruction representations. The learned instruction representation is adapted to the state-of-the-art navigator when fine-tuning on the Touchdown dataset. Empirical results demonstrate that VLN-Video significantly outperforms previous state-of-the-art models by 2.1% in task completion rate, achieving a new state-of-the-art on the Touchdown dataset.