Only matters do YOU like it.

Can you post an individual picture of the nook space? The tiny squares are not enough to see what's going on in the area causing your dilemma

Typically, most people use the nook space next to the kitchen for a dining area. The result would be that one could have as many as three places to eat in a home: the dining room for holidays and more formal occasions; the nook space for weekday evening meals; and the seating at the island for snacks and quick, small meals such as a simple breakfast.

Since you have a theme of black wood furniture combined with red and yellow cream walls, I would keep that theme in the nook. This picture isn’t like your furniture, but might give you some inspiration about combining your existing bench/settee with a table and some chairs.

Ok to be honest, it looks like it needs new paint n some different furniture pieces. Don’t like that bookshelf or red couch thing, Or the rug in front of it - at all!

All that red is (IMO) terrible looking..

sorry, don’t mean to be rude, just being honest but since u asked... :)

looks fun!

Assume that you use the formal dining room for daily dining & the nook area is more of a transition area between the living to kitchen to family room, yes? I think you might have a common open plan issue, which is: "Where do I stop one color theme and start the next?"

I would consider using the same color theme throughout (the neutral and the lovely blue-gray-teal color). Use the orange/red as pops of contrast color in ornaments, pillows, and some furniture pieces. If you don't want to dine in the nook area, you can still put a small games table or seating group there.

In other words, consider painting the stair the same neutral as the family room.

I wouldn't have thought these photos were from all the same place if you hadn't pointed it out. Each room has a very different style!

I have a red couch and LOVE it but when I look at your photos, I have to agree an additional eating area would be nice. It sure comes in handy in my home.