When there isn’t a lot of outdoor space to work with, but the desire for living space is a high priority, utility has to come first. Consider the activities you desire and the furnishings needed to support those activities. Be sure to include enough space surrounding the area for unimpeded circulation.
As the young tree here grows, it will form a light canopy over the room, changing the proportions of mass and space, as will the leafy shrubs in the corner. If this arrangement of plants and open space feels too sparse for your liking, you could trade the gently cascading water feature for additional planting beds. In terms of how the space is arranged, all the forms are parallel and perpendicular to the building, creating a somewhat formal feeling.