For me it is all about reducing the noise! There are some basic things like the fact that I almost never have two different files open side by side, but here are my favorite configurations:
Increased line height
I like giving each line some space to breathe. I currently have the line height set to 44, but I like to play with the number every now and then.
I figured, I usually don't need the available space on the right side, my code is mostly on the left side after all, only that the side bar is also on the left side. With the sidebar on the right, it is no longer in the way. The screenshot illustrates this nicely.
One of my favorite extensions. It's just so nice not having to pick up the mouse or writing out the commands in the terminal.
There are more things like font ligatures, disabling the minimap, the material icon theme or zen mode, but the three above make my top three.
What are yours? I would love to hear how you configure your editor!