Forest outside the SG
It'd be hard for him to lie back against grass as he was already propped up against a tree, and Tyalla's in his lap. Unless he's shifting to the side and pushing her from his lap, he may be kinda stuck.
"Oh? Do you find it easy to discredit yourself? I was amazed at first that I didn't rip you to shreds in the sewers. But after you sang for me several times, I knew your talent was, and is still, enough to-" the realization comes suddenly. "D-did you just call me Tea?"