remove it all

and once cleared, extend the pavers to the fence.

use resin planters to change plants and colors for seasons.

will expand the feel of the patio as well.

At some point we would like to install a grill area. Ultimately we would like to replace patio with pavers but think it might be expensive

I like the idea of extending the patio to the fence to make the seating area more spacious. You could leave the patio corners unpaved/no wall to make the corner planting beds larger.

Here are some suggestions:

Where would be best or possible locations for a outdoor kitchen or grill area? I would love to incorporate that at some point

as close to the house as possible... don't want to have to carry food prep too far across the patio.

I like close to the house too. Depending on your outdoor grill area/kitchen, you may also need to be close to wherever you will hookup for electric, gas gas/propane and/or water.

Our gas line is at our fireplace and would need to extend it. Any recommendations based on backyard area?

With how the patio cover and patio is could the bbq be a galley set up along fence? I don’t want to block access to side of house

We also have an outdoor movie screen we like hanging on side of patio cover. Trying to piece everything together so it looks clean

Do you even need a retaining wall? What is the height difference?

Pavers won't look as nice as brick, but a low block wall to hold your dirt back for now would be fine. I would get an overall plan before spending much if you think you'll be changing things.

I confess I am a little horrified at the idea of replacing your beautiful citrus trees with paving.

The retaining wall is not needed really. The difference is a foot at most. In addition to the corner citrus tree we also have citrus around our grass that’s next to patio

Where ever you site the grill, be sure to be code compliant and to give adequate clearances for any fence or patio covering near it. The grill can put out a lot of heat. You don’t want wood/cloth to catch fire or to have the heat warp any vinyl fencing or siding.