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
Muhammad bin Ka'b (may Allah have mercy on him) said that Sayyiduna Abdullah bin Yazid (may Allah be pleased with him) was invited to a meal. When he saw the adornment of the house, he sat outside and began to weep. He was asked: "What has made you weep?" He said: When the Messenger of Allah (peace and blessings be upon him) saw off an army and reached the place of farewell, he would say: 'Astawdi'ullaha dinakum wa amanatikum wa khawatima a'malikum' (I entrust to Allah your religion, your trusts and the final outcomes of your deeds). He said: One day he (peace and blessings be upon him) saw a man whose cloak was patched with a piece of cloth. He turned towards the place where the sun rises and spread out his hands like this, and Affan spread out his hands to show it, and said: "The world has come upon you in abundance," three times, until we thought it would fall upon us. Then he said: "Are you better today, or when one bowl is brought to you in the morning and another in the evening, and one of you goes out in the morning in one suit of clothes and in the evening in another, and you cover your houses with curtains just as the Ka'bah is covered?" Abdullah bin Yazid (may Allah be pleased with him) said: "Should I not weep, when I have lived until you cover your houses with curtains just as the Ka'bah is covered?"
Hadith Referenceالسنن الكبرى للبيهقي / كتاب الصداق / 14587
Sayyiduna Abdullah bin Abbas (may Allah be pleased with him) narrates a marfu' hadith that the Prophet (peace and blessings be upon him) said: "Everything has a place of honour, and the most honourable of gatherings is the one in which one faces the qiblah. Do not pray behind one who is sleeping or one who is talking. Kill the snake and the scorpion even if you are in your prayer. And do not cover walls with cloth."
This has also been narrated through another, broken (munqati') chain, and no chain on this is established.
Hadith Referenceالسنن الكبرى للبيهقي / كتاب الصداق / 14588
Ali bin Husayn (may Allah have mercy on him) said that the Prophet (peace and blessings be upon him) forbade covering walls by hanging curtains on them.
This is munqati' (has a broken chain).
Hadith Referenceالسنن الكبرى للبيهقي / كتاب الصداق / 14589
Ata (may Allah have mercy on him) said: I held a wedding feast for my son and invited al-Qasim bin Muhammad (may Allah have mercy on him) and Ubaydullah bin Abdullah bin Umar (may Allah have mercy on him). When the two of them reached the door, Ubaydullah (may Allah have mercy on him) saw that the house had been hung with silk curtains, so he went back, but al-Qasim bin Muhammad (may Allah have mercy on him) went into the house. I said: "By Allah, he has become displeased with me by going back." I said: "May Allah set you right; by Allah, I did not do this; it was the women who did it and overpowered us in it." He said: (Al-Qasim narrated to me that) Sayyiduna Abdullah bin Umar (may Allah be pleased with him) arranged the marriage of his son Salim, and he invited people to the wedding, among them Abu Ayyub al-Ansari (may Allah be pleased with him). When Abu Ayyub (may Allah be pleased with him) saw the house adorned with silk curtains, he stopped at the door of the house and said: "O Abu Abd al-Rahman! You have done this, that you have hung curtains on the walls!" Then he left. In another narration: Ibn Umar (may Allah be pleased with him) invited Abu Ayyub (may Allah be pleased with him). Abu Ayyub (may Allah be pleased with him) saw curtains hanging on the walls in the house, and Ibn Umar (may Allah be pleased with him) said: "The women got the better of us." Abu Ayyub (may Allah be pleased with him) said: "Whoever I feared for, I did not fear for you. By Allah, I will not eat your food." (And he went back.)
Hadith Referenceالسنن الكبرى للبيهقي / كتاب الصداق / 14590
Ibn Jurayj said: Salman married into the family of Abu Qurrah al-Kindi. When he went in to her, he said: "O woman! the Messenger of Allah (peace and blessings be upon him) advised me: 'If Allah decrees for you that you marry, then let the first thing you both come together upon be obedience.'" She said: "You have sat in the seat of a man whose command is obeyed." He said to her: "Get up, let us pray and supplicate." So they did so. Then he saw that the house was covered with curtains and said: "What is wrong with your house? Does it have a fever, or has the Ka'bah moved to Kindah?" They said: "It does not have a fever, and the Ka'bah has not moved to Kindah." He said: "I will not enter it until every curtain is torn down, except the curtain over the door."
This is munqati' (has a broken chain). Its dislike has also been narrated from Sayyiduna Umar bin al-Khattab (may Allah be pleased with him), and it seems that this was because of the extravagance in it.
Hadith Referenceالسنن الكبرى للبيهقي / كتاب الصداق / 14591