The Muppets Courtyard area was originally part of the Streets of America. When the Streets of America permanently closed in April of 2016 this smaller area was renamed to Muppets Courtyard.
The entirety of the Streets of America have evolved since the park opened in 1989 when most of it was part of the Studio Backlot Tour. The 2016 changes are the result of the park adding Toy Story Land and Star Wars Land to the park.
The Muppets Courtyard featured Muppet*Vision 3-D, PizzeRizzo, Mama Melrose's Ristorante and several shops.
In September 2017, the location was reclassified as part of Grand Avenue.
On April 2, 2016 most of the Streets of America had it's last day of operation to make way for Toy Story and Star Wars related construction. As a result of this, Disney re-classified the "Muppets Courtyard" and "Commissary Lane" as separate lands.
On September 29, 2017 Muppets Courtyard was reclassified as part of Grand Avenue.