This space is best served as a shoe or accessories closet. You can remove the door and widen the opening to the walk-in closet. Search for "sloped ceiling closet ideas" for open shoe shelving. The space is two rooms from a room with an egress window. (not sure on the size of the closet window) This is not safe in a fire situation to set this up as a reading room.

I really don't think someone is going to walk through the bathroom, through the closet to get to a room to read. Make it into an extension of the close for a "dressing room" or make it a sewing room, so you can close the door and not see the "mess" when not in use.

I personally would love to have this room all to myself for shoes, purses, scarves, jewelry etc.