I would use it as a small seating area. You could add shelving to the wall on the left for a library feel.

Did you have questions regarding the attached living room as well? Could we see more pics?

What are the dimensions of the dining area? Does the chandelier hang too low to walk under it?

It's hard to tell without dimensions what you can do with the living room. You might be able to have a sofa face your current entertainment center. Then have a walkway behind the sofa from the front door. You could put two chairs on the wall without the window (so you have a nice view) and then a coffee table in the middle. Check our design below for inspiration.

Something like this? Slipper chairs & love seat in formal LR and desk in DR.

With office desk and chair in an airy “leggy” style like this