The short answer: keep the path, face something
In a small living room, the couch goes against the wall that does two things at once: it leaves one clear walking path through the room, and it lets you sit facing something worth facing. That something might be a window with a view, a pair of chairs, or the television. All three are honest answers.
The path matters as much as the view. Every room has a natural line people walk from door to door or door to kitchen. Find that line first, and put the couch where it does not sit in the middle of it. A walkway should be wide enough to pass without turning sideways, and it should not cut between you and whatever you are looking at.
If you only do one thing, do this: stand in the doorway, notice where your feet want to go, and choose the wall that leaves that route open. The rest of the room will arrange itself around that decision.
Against the wall is not giving up
There is a piece of advice that floats around saying a couch pulled away from the wall makes a room feel bigger. In a genuinely small room, it usually does the opposite. Floating a couch asks for open floor behind it and in front of it, and small rooms rarely have both to spare.
Against the wall is not a defeat. It is the honest use of a small floor plan. The couch stops drifting, the walkway becomes obvious, and the open floor that remains sits in one useful piece instead of two useless slivers.
Floating earns its keep in one situation: when the room does two jobs, and the back of the couch can mark the border between them, sitting area on one side and desk or dining table on the other. If your room has only one job, give the couch a wall.
The longest wall is not always the right wall
The instinct is to put the longest piece of furniture on the longest wall, and often that works. But in small rooms the longest wall frequently carries other duties: the door everyone uses, the route to the kitchen, the spot a bookshelf can stand. A couch there can end up blocking the very movement the room depends on.
A shorter wall can be the better choice when it keeps the path clean. A two-seater or a compact sofa on the short wall, with chairs opposite, often leaves more usable floor than a full couch stretched along the long one.
The window wall deserves a word too. A low couch under a window costs the room almost no light, because daylight passes over it. A tall-backed couch in front of glass is a different story. If the window wall is your only option, keep the back low and let the light do its work.
Keep the walkway out of the seating zone
The quiet killer of a small living room is a walkway that crosses the middle of the seating. Every trip to the kitchen becomes an interruption: someone steps between you and the screen, or through the middle of a conversation, and the room never quite settles.
The fix is usually a shift, not a purchase. Slide the seating so the walking line runs along one edge of the room or behind the couch, not through the middle of it. Even half a meter of movement can move the path from the center to the margin.
You can test this without lifting anything. Walk the routes you actually take for a day and notice where they fall. If your feet keep crossing the space between couch and chairs, the furniture is telling you it sits one wall over from where it belongs.
Conversation first, the screen honestly second
Arrange the room around people first. Seats that face each other, close enough to talk without leaning forward, with a low table within reach. That arrangement works for coffee, for reading, for a guest who stays longer than planned. It is the arrangement a cozy room is built on.
Then be honest about the television. In most small living rooms the TV is the thing the couch faces, and pretending otherwise produces awkward layouts where nobody can actually see the screen. If the TV is your room's real focus, face it squarely and let the chairs angle in, so they serve both the screen and the person beside you.
Aim for a middle distance where the screen is comfortable to watch and easy to ignore. The television should be something the room includes, not something the room obeys. Tonight, stand in the doorway and trace the path you actually walk. If the couch sits in it, you already know your first move.