Santa Ynez is in the Santa Ynez Valley and surrounded by great wineries. It is a small town with several hotel options, a few tasting rooms and several great restaurants to try.
SY Kitchen: At 1110 Faraday, this is a contemporary Italian restaurant in an attractive, converted farmhouse.
To stay, there is the For Friends Inn which is a small B&B near downtown and the restaurants.
However, I enjoyed the Santa Ynez Inn at 3627 Sagunto St. It is a luxury inn/bed and breakfast in the heart of Santa Ynez. The rooms were really excellent with beautiful bathrooms and bedding. The common areas were very nice including a lovely dining room where they served a very good complimentary breakfast, wine and cheese late in the afternoon and desserts, coffee and tea in the evening. It is a great property with excellent staff. It is a member of the Select Registry of Distinguished Inns of North America. I am not a big fan of some of the Victorian design theme, but it is still a great place to stay.