Ugghhh. How do I manage to do this? Came across as "rude" once again :)

Was having lunch at work. One of the bosses came in the room looking for something. Was reading off a notebook. Asked me my whereabouts for the day. I told him. There was an awkward silence...needed a filler. So I said "right now I'm having lunch".
He turned towards me and said "I'm not looking for you.. Oh I'm not looking for you, don't worry."
Idk.... they sounded like he was offended by my words. Because of how he said it twice and then looked at me with a certain smile and raised eyebrows. I didn't understand why. So I just said "oh, okay" and continued eating.
Later only it dawned on me that he had thought I meant "don't disturb me, I'm on a break". Hence the response....ugh. :( from not wanting to make it awkward to making it the worst interaction of the day.

I already am not understood here. This will add to my anxiety now.
Ugh. I wish I had just kept my mouth shut.