Seating area around outdoor fireplace. Crushed gravel or pea stone?

Smaller rocks are usually easier to put chairs on and to walk on. Your choice

It's just what you like but boards and concrete blocks painted different colors make nice seating or even crates.

The larger the stones.... the harder to get things to set level... and the more uncomfortable they are to sit or rest your feet on.... decomposed granite or pea stones/gravel compact better...... and FYI... I saw a new thing on one of the DIY channel shows.... it was called a "gravel grid"(google search it) it opens up into "cells" like a honey comb.... and helps to keep gravel, etc. from migrating.

Pea gravel is not as sharp as crushed stone. Less chance for injuries and falling chairs.

I would use stones or gravel around the actual fire pit. Put down some kind of pavers or something to put your seating on so that it will be stable and not apt to top when someone sits on it or shifts their position. The rest of the area could be rocks or gravel, whichever you think will look the best for you.

All excellent suggestions here! Now take a look at a bunch of pictures and see what you might like and can easily incorporate into your space.

https://www.diynetwork.com/made-and-remade/find-it/66-fire-pit-and-outdoor-fireplace-ideas

https://www.backyardboss.net/outdoor-fireplace-ideas/

https://www.pinterest.com/njestates/outdoor-fireplace-ideas/

I used a layer of sand then a layer of crushed rock then another layer of sand inside the pit and outside

Use pea gravel because you can easily walk over pea gravel and it looks good.and you can also use pea stone with crushed gravel and for further help you can check gravel-calculator/ here are different options with explanation it solve your problem easily

Pea gravel. Be sure to dig up the grass and lay down a weed barrier first.

Pea gravel has rounded corners so it is gentler on the feet. Even my cats prefer pea gravel (we have both).