I think we need a bit more info . To me it looks like a nice space alreadyexcept the art is hung too high and a nice buffet would be a good idea. I will say that a wood table in a sunroom type setting is probably not a good choice since the sun will bleach it out in no time so i would probably do a glass or stone table with chirs that are done in a finish that can withstand the sun.

Ditto on more info, isn't it a dining room already? I see 1 register (or return?) over the door but imagine the heat load is pretty high. I also spy a long rod so don't know if you have blinds though. Hate to be sweating while eating.

What are your goals in remodeling?

What style do you want?

I was thinking of painting the wall and changing the floor. Thank you for ideas regarding furniture and strong exposure to the sun. We’re also thinking about slightly tinting the skylight

Regarding the floor, if the kitchen is on the left, it's better to avoid steps when you are carrying plates of food in front of your vision.

Both sides of the dining room/atrium have bedrooms. Was thinking of white walls and dark floors? Rest of the house is oak hardwood

One option for the strong sun - shade sails.

Depending on where the path of the sun is...a retractible sunshade is the best option to offer shade for daytime use ...climate could greatly limit use unless this is a tropical setting with warm nights year round...lastly with all these being met ...rain is usually a big issue ...assuming the roof will never leak may still limit your choices to “outdoor” furnishings...after years of living in tropical settings....these kind of spaces are more ideal for living rooms ..not dining rooms...things like ...humidity ...condensation..cold feet...windy conditions..are all deterrents to dining/dinner parties....in what is essentially ...outdoors

Sunsails will block the view of the sky/stars/moon ...at night...which is why i suggest retractable...preferable motorized ...shades