A row of bookshelves would be fantastic in this "library"! Perhaps two taller bokcases on each end of the row -- with shorter ones between them. Then artwork could be hung in that space. Lighting would be key -- along the bookcases -- plus an art light over the artwork. Seating depends on how many people (generally) are entertained here .... remember there may be groups to listen to the piano. Perhaps a small neat sectional (one of the smaller ones from Pottery Barn) in a white linen slipcover. Add a couple of small but comfy armchairs on each side of the fireplace. An ottoman could be placed directly in front of the fireplace. Check the Pottery Barn website for ideas for rooms. Here is a link that might be useful: Pottery Barn small sectional (for measurements)

I like the flooring idea. pick a sofa, chairs, etc, before you pick a rug. measure the space and see if a small sofa w/chaise will work. look at what kind of ottoman you'd like. they have some on wayfair w/a tufted top and weathered sort of wood frame. I actually got one for my living room. You can look at something like that (it has storage under it where you can hide toys and stuff) or just look at the solid ottomans. https://www.wayfair.com/furniture/sb0/ottomans-poufs-c214997.html

Thanks so much everyone! Not sure why we placed the chair on the right of the fireplace. I guess for it to feel closed in and a little cozier. I'll definitely move it back to the left! Currently this is the existing furniture that we have, but we're going to wait until our toddler is a little older before investing in better items (chairs and couch). Our dining space is slighting behind and to the right of the couch, so I'm trying to get a sense of what will work in the space decor and furniture wise. Would you recommend putting any art or floating shelves on the wall, to the left of the fireplace? Thanks so much again!! Great feedback!

the pro taken photos are meant to capture as much of the room into one shot. the problem is, it exaggerates the size of the room. can you stand over by your stairs and shoot into the room? try opening the front door, stand in the doorway, and shoot another pic from that angle. would you like the TV over the fireplace or against one of the walls? do you have any plans for that fireplace? could you do something like this? or what about like this? 2 sofas facing each other, two chairs in the middle. those shouldn't block the walkway to the kitchen. you could do smaller chairs instead of two sofas, one sofa facing two chairs, tv above mantle sofa against front door wall, coffee table, large recliner or two other chairs,, maybe some smaller ottomans on the kitchen door opening side. this is what beverly suggested: sofa/chairs coffee table imagine this is the far wall to the right of the FP. set up the sofa w/back to the front door. you could position the chairs differently. you'd have that whole wall for console for tv, gaming. maybe a sofa w/a chaise. stick a chair over in the corner by window below, front door would be behind the gray sofa. (or, you could reverse this on put tv on the front door wall) sofa w/chaise like this: