Here are the official definitions:
A picture, illustration, or depiction in words, especially one of a small or dainty kind;
To make, as an engraving or a photograph, with a border or edge insensibly fading away;
A running ornament consisting of leaves and tendrils, used in Gothic architecture;
A short descriptive literary sketch;
A brief incident or scene (as in a play or movie);
Now, how do I mean it when I'm talking about a vignette in decorating your home? I believe each room is a large stage with smaller divisions of focus. A table top is one small part of the whole and yet, you can focus someone's attention to that table top by arranging things to form a vignette, a mini-scene. A wall, a coffee table, a shelf or bookshelves, a cabinet, etc. can all contain little scenes that focus your attention on all the little details.
I'm a very feminine person and I like feminine stuff. I have a small collection of vintage boudoir boxes and matching accessories and trays. One tray is a mirror tray and the other is a fine woven tray with a lace handkerchief folded under glass.
I used a red and cream toile wallpaper for the dressing area and bathroom. So I went with a dark red lampshade with this inexpensive boudoir lamp. The rose "plate" is from Hobby Lobby. I have my perfume bottles here. the bedroom is painted the cream and the vanities are painted in cream.
With powder and stuff being used, this area can get dusty and needs to be cleaned often. This would not work if it was dusty. It's beauty is in it's sparkling presentation, it's orderliness and the pleasing color combinations. I did not spend much money on these things, they are not professionally grouped by a decorator. I didn't spend hours or days looking for just the right pieces, etc. It's just clean, orderly and touches my feminine side. The mirrors and pictures and chrome and glass all shine. I even wash my perfume bottles to keep them looking nice.
If I didn't have time to keep all this sparkling then my option would be to pare down. Maybe just have my perfume bottle(s) on a little mirror tray and the lamp. Be sure to vacuum the lampshades too. I don't happen to wear makeup, but if you do, keep it down to necessities and store in basket(s) in the vanity. Pull out, use and put back. Maybe 3 or 4 times a year go through your makeup and cull out old's and unused's and toss. Wash your baskets and rearrange. I have no idea why someone needs tons of makeup. You can't possibly wear it all! So find what works for you and keep it at that. When you get close to the bottom of your compact, either throw it away or finish it and replace. Don't have bottles of half used stuff waiting to be finished that is accumulating.