Sayyiduna Abu Talhah al-Ansari (may Allah be pleased with him) said: I heard the Messenger of Allah (peace and blessings be upon him) say: "The angels do not enter a house in which there is a dog or a picture." He said: I came to Sayyidah Aishah (may Allah be pleased with her) and said to her: "This man tells me that the Messenger of Allah (peace and blessings be upon him) said: 'The angels do not enter a house in which there is a dog or images.' Did you hear the Messenger of Allah (peace and blessings be upon him) mention that?" She said: "No, but I will tell you what I saw him (peace and blessings be upon him) do. The Messenger of Allah (peace and blessings be upon him) went out on one of his expeditions, and I took a curtain and hung it over the door. When he (peace and blessings be upon him) returned and saw the curtain, I perceived dislike in his (peace and blessings be upon him) face. He (peace and blessings be upon him) pulled it until he tore it and cut it, and said: 'Allah did not command us to clothe stones and clay.'" She said: "We made two cushions out of it and stuffed them with palm fibre, and he (peace and blessings be upon him) did not find fault with me for that."
In the narration of Suhayl the words are "stones and bricks", and these indicate that covering walls with curtains is disliked, although (the context of) the other narrations shows that the dislike was because of the images.
Hadith Referenceالسنن الكبرى للبيهقي / كتاب الصداق / 14586