No it's artificial grass - with so many dogs our lawn was a smelly mud bath! It was very expensive but well worth it - the dogs love it and it has loads of drainage underneath so all we have to do is water with some pet-safe disinfectant every now and then to keep it clean.
Wow, she is gorgeous!! Lady & the Tramp was my fav movie as a kid & I always wanted a Cocker Spaniel after that. hehe Never did get one. But Lucy is simply perfect! Congrats on adding her to your family. Love your yard btw...very doggy friendly!