The picture gives no context. Back up, hold the camera level with the horizon and show the surroundings. Especially, show views from the primary approach.

Thank you for your suggestion. I included some more photos.

The retaining wall has an unattractive finish on account of improper configuration, yet the new patio is highly dependent on it. Is there any interest in fixing it? That would be done before creating a "patio" adjacent to it. (A proper wall would not be 10 different levels unless it was of uniform increments and slope, and each level would not be turning in the wrong direction at termination.)

What do you envision as the fire type? ... seating type and arrangement?

For the best look, you're going to want to tie the new floor outside edge to the existing patio at 90,* not any other angle. Any other angle looks wrong, weak or sloppy.

In the picture, I'm not trying to show exactness, but simulation and approximation of concepts.

All good points!! Thank you!!

Yes, the angle makes sense. I'm glad you pointed that out.

As far as the fire type, we are planning on a wood burning (no propane) fire bowl. Seating arrangement would include four adirondack chairs.

We are planning on fixing the retaining wall and had looked at some options over the weekend. A little overwhelming as we know it needs to be there but want to do it properly.

It looks like you have 2 different retaining walls. A poured concrete wall that looks structurally sound and some kind of stack stone that looks like a bad DIY project that is falling down. Before you consider your firepit, you might want to address the structure of your retaining wall. You could combine the retaining wall project and the firepit project into one big project. Perhaps replace the DIY retaining wall with something more substantial with built in benches on the firepit side and the actual firepit lowered into the ground. You could go with concrete again or armor stone or something more simple from your local landscape supply.

Thank you! I tried to edit my original post but it would not allow me to. We now realize that the retaining wall needs to be addressed prior to laying the flagstone for the fire pit. Not sure what a job like this entails... if we take down all the stacked concrete do we then rebuild to where it is all level around the curve and also level with the concrete wall?

Given that the retaining wall retains a SLOPE, it makes sense to have it step down. But 10 irregular stepdowns is very messy looking. 3 uniformly equal step-downs would look much better. Considering that you are incorporating a patio next to it, it would make sense that the patio edge and the retaining wall footprint exactly coincide in some attractive way ... like a real shape ... like a CIRCLE (since that also makes sense with a fire pit.) I gave you an idea about it in perspective view ... but that's subject to misinterpretation and is only designed to inspire you into the ball park. It is in PLAN view where the wall and patio layout would be worked out. Then, you could see the exact configuration. Plan view starts with a base plan along the lines of this, where you can see how things are laid out. It is drawn to scale in order to be useful ...

An example:

(Presently, your wall does not lead into an actual circle.)

You might study "retaining wall sections" (search Google) to see how various ones are constructed.

Wow! Thank you so much. You went far above any type of advice I thought I would get. This all makes so much sense and I am so happy I asked before we did anything costly. Very much appreciated.

I LOVE THIS!! Especially the use of plants as the finishing touches. Wow!! I am overwhelmed with all the help!! Thank you!!