There are so many options -- I think you need to start by asking yourself: What do I want to do with this space? Do you need more storage space? Or could you use the space to display a collection? How about entertainment equipment (or records/cds/dvds) -- you have the little TV there already. Not sure from the photo, but is that at the end of a bed -- in which case TV or other entertainment might be a good choice. I gather that you own the place, so I assume you can modify as you please -- but do you want to spend money?

I would place a hinged mirror or large artwork over it and turn it into secret storage. Then it would be a handy place to store your bed linens.. Or if you like having the tv there you could make a nice shelf built-in with an enclosed area at the bottom for a dvd player or something.

Remove the wire shelves and install wooden shelves - They don't need to be full-depth, but at least 12" deep to hold books, etc.

Shelving for display and storage are the most natural uses for a space like this. Chunky floating style shelves, not white wire. I'd suggest making book shelf depth, perhaps with a false back, a great place to install a home safe.

I had a similar space once, and I had my brother install dark wood shelving. It looked fantastic! He simply nailed a ledge on the three sides inside the nook for each shelf (like pieces of wood about half an inch thick) and then nailed the shelves to that. It would look great if you papered or painted the outward facing wall to contrast, and then filled with books and collectibles!

1. Display a 3-dimensional piece of folk/found/fine art or a statue. 1. (a) Same as 1, just mirrored first. 2. Upholster the walls or line it with comfy cushions & curl up in there to read on stormy days. 3. Put one full shelf across the middle and pile the top half high with vintage sheets, lace tablecloths, saris, inexpensive lengths of cotton in a selected palette of solid colors; pile oversized books horizontally on the bottom shelf, topping that stack with a small collection of crystal balls or shells or bells or teacups. 4. Make it an altar. 5. Install a light/electric outlet and : 5. (a) Build a watertight tray the size of the bottom and grow plants. (b) Mirror the back and use it as a vanity (this might require installing a shelf at whatever height makes this work. (c) Hang a sheer curtain, translucent glass, stained glass, silkscreened fabric in the opening and let it be a kind of "lamp". (d) Install a slideout shelf and hang a sleek folding chair on the wall: instant laptop station. (e) Fill it with ugly electronic devices to facilitate hours of mindless media consumption. (f) Install shelves and put in an espresso maker, tiny refrigerator, microwave, and accessories so you can make lattes and toast in your room on Sunday mornings (or every morning) without anyone even knowing you're awake. Keep the door locked and don't answer if they knock. 6. Make it a wine bar. 7. Make it cat heaven. (For this application, you'll probably want to actually own a cat.) 8. Buy a fabulous bird cage and acquire a beautiful bird. (You'll notice that (7) and (8) are pretty much mutually exclusive.) 9. Build in ziggurat-style stepped shelves to display a large collection of small objects. 10. Line all three walls with decorative hooks and hang vintage clothes, hats, lace, scarves, vintage linens, etc, from the hooks (i.e., draped on the hooks) or from hangers. 11. Make or buy a stack of floor pillows in wonderful colors and fabrics (or all alike if that suits your style, or whatever) and store them there. They'll look cool and who has room to store the floor pillows we all want when friends are over? 12. Buy one or two cool trunks that fit the space and use the trunks for storage. 13. Install drawers, topped with a shelf. Could be a great linen closet -- homes used to have these, with drawers for sheets and towels and a shelf or two on top for pillows or whatever. 14. Install a fireplace. 15. Hire an artist to paint a mural inside it and leave it empty.

My vote is to install sliding shelves (so that way you can utilize the depth but still be able to get to your stuff) and then (agreeing with Nepthys) install either a mirror or a piece of art on hinges over it so you have hidden storage.

So many good ideas! Simplest thing might be to place a tall mirror or piece of framed art inside and place a horizontal stack of favorite coffee table books on the bottom.

Put a mirror inside and store your cosmetics etc on the ledge and jewelry hanging from the sides. turn it into a make-up/ dressing nook.

I say 2-3 rows of hooks on all sides of the nook. then hang purses, scarves, hats, necklaces, etc from them like you own little boutique.

Bookshelf. Bookshelf. Bookshelf!

If you don't want to put shelves in it, it would make a great altar space, I'm not particularly religious so in mine I have things that make me happy - pictures of people but specifically relationships with zero tension (this is a no-drama spot), feathers I framed, pictures representing my next vacations, a few beautiful stones, a candlestick that was a prop in one of my favorite films, a buddha statue (well, really, a cat pretending he's a buddha...), etc.

Following Nephthys' idea, I'd say hang a gorgeous framed/hinged mirror to hide...the coolest jewelry nook ever! Install shelves, pull-out drawers lined with velvet, hooks for necklaces, scarves and belts; and hang some of these (http://xrl.in/6b11) from your wire shelves or install a closet rod--they're FAB for hanging bangles and other bracelets! (what I use) :)

I would install shelves, use the taller ones for a display area, and the lower ones for storage. Baskets would be great.

Put a safe in there with some wood shelves and put a framed mirror door to disguise it. Your own secret spot.

I would paint the inside a complementary color to your wall color and use it as an art nook. Hang a few pieces or artwork and maybe some statue/figurine type of artwork. You could even buy some inexpensive lighting from IKEA and light it all up from the inside. I would try a forest green color or even red for a nice strong look.

If you like being able to watch the TV from bed, I'd leave the TV there since it fits. I'd take out the wire shelving and add several wooden shelves for storing media equipment, books, movies, whatever.

My original idea was to install a couple of low shelves for displaying things that make you happy and a hook at the top to hang an indoor plant. I love having greenery inside it makes everything feel fresh and calm.
I also like the idea already suggested of installing a mirror at the back and a low shelf for applying make-up, but with the addition of some lighting.

Put a simple door on it, a shelf or two, and put your off-season clothes in there. Call it your attic.

I love the door/mirrored door idea. I think it's great extra storage space, so throw in some shelves, and if the door thing doesn't work, grab some pretty boxes and stick stuff you don't use very often in there. The possibilities are petty endless!

I actually think it's a cool little area.

1. You could add shelves and display stuff there, so you won't have to worry about the height.

2. You could make it a vanity area. Put a mirror on the inside wall. Run a light with a cord up behind the mirror and hang it from the top. Get small trays and organize your makeup and hair stuff. Or put jewelry in trays and hang hooks on the side for necklaces.

3. Install shelves, then hinge a "door" and use it to store either folded clothes or put hooks inside and continue to use it for purse and accesory storage or jewelry storage, only hidden and more organized. For the door, first measure the opening of course and add to each side so the door covers the gap fully. Then search around for something like old shutters or something that can be used as doors.

Good luck and make sure you show us the finished product!

Put a curtain rod up near the top and hang your scarves from it. It'll add color to the room, and make use of a space without you having to worry about reaching it all the time.

I see a couple of glass shelves (not wood) on the top half - the bottom half I would close in with a hinged wood door of some sort - opening up to reveal hidden roll out shelves for jewellery storage. If you don't want to put a light at the top of the nook to shine down through the glass shelves, you can up-light with a small lamp sitting on top of the "jewellery box".

I'd either do a bookshelf or, if you have some sort of art collection, make a little display case - paint the inside of the nook white, add glass shelves, and put a little recessed light in the top. My parents made a couple of similar little display nooks to hold their collection of glass and ceramic bowls, and it looks terrific.

I think the important thing to remember when pondering this decision over is that this is facing your bed. What do you want to see when you go to sleep/wake up in the morning? Books? Art? Art over storage? Love the scarf idea I have to say

Id put a big stereo in there!

I'd build one or two drawers at the bottom. Then you could still put your TV on top of the drawers and do shelves or hinged doors above the TV.

One thought I didn't notice above is drawers. Build in a dresser to free up floor space. You would obviously need a step stool (folding type?) to reach the upper drawers, but it might be a great place for out of season clothing storage.

Or cover the opening with a door or curtains for general storage.

Or empty it out and use it as a tokonoma with a scroll on the back wall and a tall ikebana style flower arrangement.

how about a full length mirror?

Actually in Feng Shui it is bad to have a mirror facing you in bed, it will scare your spirit while you sleep, if you hing a door on there have it be a beautiful piece of artwork.

You could build a shelf unit that fits just inside the space. Mount it on hinges so that you can open it like a door. The space behind would be great storage, and the front would look appropriate for a bedroom.