Throughout the poem, the setting is portrayed as a lush, natural environment. The speaker mentions "a vale where the wind breathes sweet" and "wild rose-trees" among other natural elements, such as "sun-burnt mirth," "the stars singing in heaven," and "the moon on the mountain."
These references to nature suggest an outdoor setting, likely a garden or a meadow, which is often used in poetry as a symbol of love and beauty. The imagery associated with nature also ties into the theme of beauty as something pure, natural, and divine, as opposed to something superficial or artificial.
Overall, the setting of the poem "Beauty" can be interpreted as a serene, natural environment, surrounded by symbols of love and beauty, that provides a backdrop for the speaker's contemplation on the essence of beauty and the transcendent qualities associated with it.