Are you planning on enlarging the balcony? At the moment it looks like you only have room for a BBQ (shown on the right). Or, perhaps leave a small balcony the same size but install pavers at the bottom for seating/eating area without overlooking your neighbours.

A few ideas…. Power wash your railing and steps. Either paint or stain. Get some large slate and place on the ground in front of your railing to create a patio. Add bbq, small table and two chairs. Potted plants and flowers in matching pots to accessorize.

Anything stopping you from making it larger and more functional? I'd probably expand it in both directions and add another platform at a lower level, too. Maybe add a pergola over the door to provide some shade:

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Do you have a different place to sit? If so, then focus on the stairs. If not, I'd plant a tree or vine to hide the neighbor's yard.

As it is there is no space for anything except the BBQ and even that is not ideal where it is . Right now it is a junk place so what exactly is it you want from us ?We need to see that whole space to really even begin to help and some info as to what you want from all that back yard not just that tiny space .Waht is under that wood platfrom under the stairs ? IMO a nice 2 or 3 level deck would be my choice but I need context and info.