Not sure what your budget is or if you plan to do any landscaping back there but suggest you spend some time when you can to rake it all up and remove the debris to freshen up. The grass will stay there but not look so nice if there's no care given to it. You could run an edger from each side of the garage toward the house maybe 15-20 feet (enough space for your vehicles) and then fill in with pebble stone. Right side appears to slant so if there's an edge made at that side, you'll want to level out a spot for the trash cans.

Photo of idea -

If you park a car there for any significant length of time you will block the light from the grass and it will die. Not to mention mud and ruts when it rains.

Reveal your location, and we might have something useful to say.

We’re in Maryland. I assume the grass will die. The alley slopes down to the right of the picture. I guess I’m wondering about a range of options from “serviceable” to “optimal”.

I wouldn’t want to have to mow or trim grass that’s likely to look pretty bad regardless. I would probably take out the grass and put in a system designed to keep gravel in place, then gravel the area.

Is the car going to be a daily driver, so it spends much of the weekday at work?

Years ago, we rented a house with a ribbon driveway outside of Philly. If the car(s) sat in the driveway for days on end, the grass between the ribbons suffered. If they were being driven to work, the grass was fine. So I'd work on some sort of hard surface for the tires to drive on, and leave the rest grass.

Shovelling that driveway was absolutely no fun.

Oof. It is not a daily driver and I didn’t think about that aspect! Sadly the snow shoveling we have to do is pretty minimal. And I guess we could park on the street in front of the house for easier entry exit if significant snow is forecast.

Not all concrete and allows water to seep in to soil , but not your wheels!

Gravel it is easy and honestly this is off the alley so nothing pricey IMO just practical.We have a huge gravel driveway where there are 3 parking spots plus our carport all gravel good landscapwe fabric before the gravel the odd weed pops up but easily pulled we did do the gravel in two dumps with a pounder in between to get the gravel to be flat and after that just the cars did the work.to keep it where it belongs I just think off an alley does not need a fortune spent .I like gravel because it also still lets trees get water.

gravel is NOT easy. It soon sprouts weeds as thick as soil but can't be mowed. If you see a pristine gravel drive you can assume they are nuking it with roundup. I suppose corn meal like Preen would help. So would hourly raking like at Ryoanji in Kyoto:)

Why not a concrete or an asphalt driveway?

I would dump gravel. Got my truck stuck this morning in soft ground since my husband’s battery was dead and I had to pull the truck onto the grass to jump the dead battery. You don’t want to have to be moving vehicles around every time they call for rain. Sometimes soft ground is worse than snow. You don’t need to spend a lot of money on a “system” but you will probably need to dump gravel a couple times as it sinks into the ground.

My neighbor put in pavers with holes, like @kazzh 's first picture. So far, it's looking good. I have gravel. Weeds grow in it. The worst is under our crabapple. The crabapple roots go deep fast. Weed barriers just delay the time when your gravel is full of weeds.