It's not clear from the questions exactly what you're asking, nor is it clear from the photo what the possibilities are. If you're asking about having a permanent, covered parking place outside of the garage, yes, that's possible, but would likely (as in certainly!) involve knowing what your municipal code allows. Insofar as, "Would a retractable awning look weird?" .... we don't know where and how you're suggesting it, so can't really answer that question.

Other than that, planting a landscape in the back yard would certainly help its image. I would plan for something that would screen the peering eyes of the neighbor's upstairs windows.

some ideas: