Some common brown mushrooms in yards in include mycorrhizae, armillaria and Panaeolus foenisecii, as cited by the University of California Extension.
Light tan to gold colored mychorrhizae mushrooms are considered beneficial and are found growing connected to shrubs, trees and roots of herbaceous plants. Armillaria mushrooms are a light brown, honey color and grow in clusters at the tree base. Their presence indicates a fungal infection in host plants. Panaeolus foenisecii are very small brown mushrooms with delicate stems and cones and are frequently seen in the new sod in lawns.
Armillaria mushrooms are indicative of the fatal root rot disease referred to as armillaria root rot fungus. Infected plants rarely survive the infection, and there are no curative fungicides for it. Mycorrhizal mushrooms help the host plant obtain water and nutrients from soil and often sprout in lawns. Panaeolus foenisecii mushrooms usually subside once ideal growth conditions, like consistent soil moisture, are no longer provided to new sod. The mushrooms do not harm the grass.