The courtyard within the castle walls is also known as the bailey.  In a war, the villagers and animals were sheltered here.  In peace, the area was the center of activity as the housing place of several workshops: the blacksmith, stables, brewery, candle makers, weaving and tailor's shop, carpenter's shop, chain mail maker, atilliator (made crossbows), wheelwright (made/fixed wheels), die vats, butcher, granary, and so on.  Shops in the bailey were wood, had thatched roofs, and were built up against the inside of the castle walls.