Define your space. Most people feel more comfortable in an intimate, protected space, than out in the open, where they can be seen by onlookers. Imagine how it would feel eating lunch with your family at a picnic table in the middle of a large lawned front yard, next to a busy street. Now imagine sharing lunch in a small shaded garden. You can focus on your friends and immediate surroundings, without a thought of passersby.
Determine the size of your outdoor space. This may be dictated by pre-existing structures. If not, create screens with tall plants, fences, recycled shutters, outdoor cloth screens, or trellised vines.
Add furniture. Comfortable seating is a MUST! A great place to put up your feet and read your favorite book is invaluable. Provide seating for a guest or two. Add a table for dining or just resting your glass of lemonade.
Add lots of plants. Plants calm us and appeal to and entertain our senses. They provide food. They sound wonderful when the breeze rustles the leaves. Flowers like roses, lilacs, and lilies smell divine.
Add lighting. To enjoy your outdoor living space at night, have some sort of lighting. A bright overhead porch light is too much. Good options are solar lamps, tike torches and candle light.