Remove clutter and make an attractive additiional seating area.

How about built in bookcases from the stairs to the bend in the wall, floor to ceiling. Make it a mini library instead of an area you just walk through to get somewhere else.

Cozy dining area?

I like the dinning idea if there is enough space.
Or how about a study area?
Or a nice reading area?(nice chair with lamp, maybe a little book shelf).

Thank you all for taking the time to look at my question and answer with so many wonderful ideas. I wanted to answer some of the questions, and ask for some more of your great ideas!

We did try putting the table and chairs there, as it was designed to be the dining area, but it was claustrophobically small! I will include a floor plan so you can see.

I love the idea of a mirror! Which side would that look better on? Would the other side look better with a tall bookcase or one that is not overbearing. I am just so scared I buy something and it makes the place look even smaller! Maybe putting a couple of small chairs with a small table is the way to go. As you can see I am very confused!

Thank you.

Given the case that the dinning table fits too tight in that area. I think a couple of chairs with a table and lamp would look nice. Depending on size of chairs and table the mirror would also look nice on the wall on top of them across from the stairs.
Otherwise as another houzzer suggested a nice bookshelf there and the mirror would make that area seem like a nice passage way.....let us know what you decide.

Does anyone know if it is bad luck for some cultures if I were to put a mirror on a wall facing a staircase?