Wow that is small. Seems like you have two means of access to this space, and probably need to maintain a means of egress.

Keep the brick, plant things, like vines, to cover the walls, and put potted plants near the walls to creat a foreground. I would creat a visual field of green since it's too small to have a party there, just make it a visually appealing view.

wall fountain? http://www.apartmenttherapy.com/roomark-cerrissa-82708-61129

Or even a regular fountain -- maybe with a couple of bright orange koi? http://www.apartmenttherapy.com/best-outdoor-fountain-sources-121698

Or a row of birdhouses and hummingbird/butterfly feeders to watch the wildlife?

I'd paint the cinderblock a dark green and put up a trellis just in front of the blocks to grow some type of clinging vines or roses. Then I'd finish this side of the fence with wood (pickets?) to match the side you don't see and then stain all of the wood a dark brown. Firepit or fountain, whichever you like better, seating with cushions and a small bistro table...and viola....outdoor dining room.

I would stand back and look through the door as if it were a picture I was looking at framed by the door frame. Is there a color scheme in the room you would stand it looking out that could influence flower colors outside?
Maybe finish off the fencing so that the side facing you has a clean finished look like the "good" side. I would paint the fence black, add a wall fountain to the fence and two substantial planters on the bricks on either side with a tall ornamental tree or shrub in them. Add some potted plants around the base with colors complimenting your interior colors. Another idea might be to add some topiary animals to the space- like a giraffe looking in the door!

Use the Apartment Therapy search tool for "Balcony"

http://www.apartmenttherapy.com/search?q=balcony

This year I painted my cheap wooden shiplap shed in pink and white candy stripes and it looks, well, wonderful. Even in cold, wet, overcast December it looks warm and cheerful and has gotten loads of compliments. (It's directly opposite my kitchen window, so I knew I'd be looking at it a lot, all year-round).

I used Cuprinol Garden Shades, which are specifically for outside wood and have a very wide range of colours and are very good for custom mixing (I mixed the shade of pink myself). You can have a look at the range here http://www.cuprinol.co.uk/garden_colour/index.jsp.

I would string lights at an angle coming off the building to form a sloped roof/canopy overhead.

I would build a horizontal slat fence all around the space to unify it and hide the mis-matched materials. I'd also remove the brick and replace with large scale concrete or stone pavers. I would then place planters along the back, or you could hang mirrors or other outdoor appropriate art off the new slats.

Oh, I like this. I'd say start with a bistro set, some potted plants, and the lights and see how you feel from there. Sounds like a nice place to have a glass of wine in the evenings.

mother-in-law suite?
sans roof

Oh, I'd raise the floor of the side yard, so you can actually step out of the french doors to enjoy it - build a deck to cover the side yard. Then apply all/any of the suggestions above.

You have something climbing up the walls now. That is a good start. You need to continue to use this vertical space. I think this would be a great space for grow bags, succulent wreath or maybe a pallet planter. Work with herbs and or succulents. This will give you a variety of color and texture which will be more interesting then one solid vine. I don't think you have to cover every inch. The important part is to create a focal point that looks good when you are sitting or standing.
I would also add something fragrant. Honeysuckle, Roses etc Definitely bush climbers. If your weather will allow, a bouganvilla would be a dramatic punch. If you want to go bold.. I'd paint the wall a deep blue and have hot pink bouganvilla...
~ C

I had this photo pinned of a similar situation, the walls outside were stucco and not fencing but they had a beautiful succulent green wall type art installation hanging. It was lovely. The fountain and pond thing sounds pretty cool too, especially if you live in an area without water restrictions.

You can build a little raised bed with an edging near the bricks. Fill the bed with soil from the brick path to the fence. You can use things like old water bottles "planted" in the soil to help with watering.

At the top of the fence,use some hanging baskets with plants that grow down. At the bottom of the fence plant vines that grow up !

I think you have enough room for a small raised bed at the end of the patio. Veggies ? Shady areas will do well with salad greens. Or a comfy chair ?

Paint it all a uniform color, and put down some uniform flooring - mulch, brick, tile, whatever - and put up a vertical garden. There are loads of these around - from d-i-y to expensive designer models. Just google 'vertical gardens' or 'green wall'.

You can grow herbs, salad greens, and a variety of flowers or greens. I've seen these and they are always beautiful and interesting to look at.

Thanks so much everyone! I'm definitely considering grow bags or a succulent wall installation. Just to clarify, I have a perfectly good large patio with a dining table on the other side of the same room, so I don't need more entertaining space, and you can't really see the sunken brick surface from the dining room. It really just needs to be kind of a giant picture window installation kind of thing, so lights or a fountain might be a good touch.

Hire Jeffrey Bale to do his magic...

http://jeffreygardens.blogspot.com/

or at least get some ideas looking at his magic!

I like the idea of strings of lights as a ceiling - not sure if that is practical though and needs to be considered from inside. I'd run wire in a grid pattern across the rest of the fence and encourage the vine to spread into a green wall. Put either a brightly colored bench/pot etc to one side as a pop of color or a fountain. Fountains need attention so be realistic on that - a brightly colored bird bowl/bath could work - bring some wildlife in. I veto a collection of stuff - go for bold and simple.

I agree with @BethM's idea of building a horizontal slat fence to cover the mismatched materials. You'll have to remove the vine to do this but honestly, it's not great looking, it's just sort of filler so no big loss. Build a low wood bench that functions as a step to access the yard from the inside. This could be as simple as one ne beautiful 2" x 12" plank of redwood, sealed and set atop several cinder blocks (you really will only see the top).

Once you get a clean slate, it really depends on the style of your house, climate and personal taste as to decorate your little outdoor room. You could do something really minimal/Japanese zen by adding gravel, a couple large stones, a potted Japanese maple and a couple ferns. A small fountain would look nice in that scenario.

For a fairly traditional friendly garden, I would get 3 coordinating ceramic pots in colors you love (possibly the accent colors going on inside your house) - or bright white -- the color really depends on your interior colors, but the goal is to add fresh outdoors feeling to the space. Plant 3 gorgeous, big plants that don't need much care -- olive tree, australian flax, agave, philodendron - plants with shape rather than a colorful blob. Next, I'd put 2 chairs and a little table out there - they don't have to be big, just enough to suggest a relaxing sit outdoors.

Good luck. Lots of potential in that little space.

Succulent wall installation! A friend of mine has a similar set-up and they planted succulents that climbed up their fence. If memory serves, they also installed some accent lights and a small garden statue out there. The result is amazing - a neighbor lives just on the other side of the fence, but you can't tell when you look out the window... it looks like they're living in some French country estate.

You did not say if you actually use the outdoor space (you said you wanted something pleasant to look at). It does seem quite small so I would vote for a Japanese garden. You could get one Japanese maple in there (select one that is slow growing variety, like Viridis - it has nice green cut leaves and turns blazing orange in the fall).
The smaller space would be ideal for a Japanese garden.
If the Japanese garden look does not appeal to you, I would then suggest some nice climbing vines, preferably such that retain their leaves in winter.

It dosn't look like you have a lot of space to work with, but you can do a "lipstick" job - a little touch up- without investing a lot of money or doing a major make-over. A small bistro in a fun color would be nice to look at and to use. You could paint the board fence if you wanted, or just leave it natural and allow some vines to grown on i. Some rectangular planters with bright colored flowers would be nice along the fence. You could also do some hanging baskets from the fence, or on the ground, one of those standing planters that holds two or more pots. Start out small and add to your space. A wind chime hanging from a hook on the fence might be enjoyable, or a colorful wind spinner of some kind. Put in things that appeal to all senses - sight, sound, smell, texture, taste. (Think a pot of rosemary or mint for seasoning.) It's a nice little space. Enjoy it.

Keep it simple. If you cover the wood/concrete wall with a classic vine like English or Boston (college-type) ivy you will hardly see either wall material. However what you have now is doing well so that is an option - making cuttings and planting in rich soil which may necessitate removing some bricks and face the concrete with the same wood. Adding a trumpet vine would attract hummingbirds in late summer. The bricks are charming and many would envy you their old world look. A few years ago their were cheap wall fountains everywhere but Lowes had some this summer. Besides the soothing sound birds are also attracted to moving water.

I'd do this as well - have small zen pebble garden in this area. Maybe bamboo fencing to cover the regular fencing?

I did something similar in my yard and placed a cor-ten element planter from planterworx in a sea of pebbles.

Maybe take a look at some of the traditional Japanese treatments of spaces like this, that are meant to be looked at, not entered. If you think of the view from the window as a frame for a landscape scene in miniature, you can compose something beautiful - a Japanese garden (check out keywords 'tsuboniwa', or courtyard garden, in Google Images) example might use some sculptural dwarf conifers, large boulders, a dwarf Japanese maple, river rocks, bamboo screens and vines. You don't mention where you live, which is important for knowing what kinds of plants will survive the winters. A living succulent wall, for example, would have to be brought indoors in most areas of Canada (except for some parts of BC) unless you're ok with it dying over the winter, while a Japanese maple would probably fry in an enclosed space like this in some of the southern US states. You also need to take into account your light exposure - do you get a lot of sun, is it shady most of the day? If you're not going to be able to get at it to water it you'll need to specialize in xeriscape plantings suitable for your planting zone. Basically, there are a lot of things to consider here, but this little space has the potential to become a very nice little "landscape scene" if you do it intelligently.
The planning and layout of courtyard gardens such as tsuboniwa can be applied to any style, so if you're not into a Zen look, adapt it to your preference. Just make sure you're choosing plants that can withstand your conditions, or else just plant lots of annuals in containers and install a crude irrigation system to help look after it.

You have an advantage over someone with a balcony... you have some ground in which to plant things. The quickest way to cover up the fence might be to plant some ivy (Boston Ivy is a type that won't damage the fence). Looks interesting even in winter after it's turned red... Hanging a string of lights on the fence would give you something to create a nice ambiance in the evening. Quick easy and affordable.

Build a brick planter against the fence, about half the depth of the space (but allowing enough room for the french doors to open if they open outwards) and a couple of feet high.

I once saw a beautiful effect with olive trees planted close together to form an aerial hedge (ie a hedge with the foliage removed at the base), underplanted with agave. Low maintenance, and the grey/green colours looked very sophisticated. Depending on your climate you could try something similar with different plants.

Paint the inside of the fence white, to match the wall and reflect more light - and then I'd go with the hanging succulents if it gets enough sun.

Assuming it gets enough light, I would add some climbing roses, a bird bath, and a bird feeder -- and walk away. It has a beautiful, English garden-like unkempt feel to it, and I don't think you need to "fix it up", but rather deepen the mystery. Keep those pavers, and leave the brick unpainted. Good luck, I'm jealous!

I would find some vine or creeper that would survive with little care in your particular area, and plant it to cover the concrete and some more of the wood. I kind of like the current vine and the brick and would just add to it.

Then I would find something to be a focal point for the area, perhaps a fountain, either on the wall or the ground, or a piece of outdoor sculpture or a large piece of driftwood or a large pile of stones.

Like Sprayfaint, I like the sort of unkempt, abandoned garden feel it has and would play that up.

A further thought - the doors should lead to something (but not bird feeders which lead to mice) and are a design feature in themselves so don't have anything too busy out there. I'm still pulling for English ivy which is green all year, fast-growing and dense with a simple water fountain gurgling water and centered on the wall - simple, elegant and tranquil. If you wish to leave the doors open in mild weather mesh curtains would do the trick.

You should defiantly replace the flooring, brick work is nice when properly maintained and done properly, so no cracks for the weeds and so on. Decking is lovely as it feels as if a true effort has been made to make the place welcoming and makes the space seem wider. I would repair the areas of the fence and wall that need it, a new layer of cement and a paint job, white is nice as it is simple and is not trying to hard.
I would defiantly install a corner seating feature where the wall is to use up the space and make it seem wide, calm and used, you can easily make one, they would have cushions that are suitable for the outside weather.
You could also have vertical herb or flower garden patch, great for small spaces obviously, could use objects to "include the senses", wind chimes, wind ornaments and so on. I would also use a lightly coloured wooden table and chairs, as they are too welcoming and natural.