We do, we just use the word garden multiple things. We might have a front garden in front of our house, a back garden at the back of the house or a public garden somewhere else. All of them have flowers, unless your front garden's been paved over to make a drive or something.
Why isnt "we are waiting in the courtyard" correct here? "We are xxx" is usually an acceptable alternative for Duo. And I don't think the Italian cortile is the equivalent of the North America "yard" which is closer to the British "garden". In Canada at least, it seems a "garden" i.e. flowers is something you have in your "yard" i.e. space around your house. Whereas a "courtyard" in Italy is an enclosed paved space open to the sky within a building. Am I right?