I've had some drainage issues with sand from the patio washing away whenever it rained, so I planted sod there last summer as a temporary fix. Now that that's established, I want to integrate plugs this spring so they'll eventually take over the area.

It was built to be driveable, but I haven't driven on it in over a year and don't plan to. My first though was some Anemone canadensis with some low growing native grasses and sedges mixed in. I'm sure this will include random low-growing flowers I pick up at native plant sales as well.

The area gets full sun in the morning to early afternoon and then shade later on. I would like it to take water in heavy rains. To prep it last year, I dug down about a foot, added a layer of gravel and filled the rest in with topsoil and organic mulch/compost. As with any of my landscaping, the goals are native and beneficial to wildlife. Thanks for any suggestions. (the pics, in order, are of this May, Sept, then Dec).

I think the short height combined with the sunny/dry location will cut down the list considerably. But perhaps pearly everlasting or pussytoes might work.

FataMorgana

Many many sedges can tolerate wet/dry seasonal conditions. I don't know where you live/garden - other than zone - or I'd offer some species names that could work just fine in that spot.

C plantaginea is my favorite; the clumps continue to increase in size over the years. In the wild I have found it streamside, but it tolerates dry here...with shade. C. platyphylla is also great.

C. pensylvanica, C. appalachica, C. cherokeensis are "fluffier" ones that I have in containers, but they haven't been evergreen for me.

You need to check out the North American Rock Garden Society. They have lots of suggestions, both native and other sources, if you are considering that type of gardening.

Two of the natives that grow there might look good in your driveway strip: Asclepias tuberosa (orange milkweed or butterfly weed) and Sporobolis heterolepis (prairie drop seed). They get about 18" high and offer many wildlife benefits. You could intersperse them with lower growing plants for a more dynamic effect.

But I wanted to say how I love this site and how generous people are with knowledge and willingness to take an interest in other people's needs.

Prairie Smoke (Geum triflorum). Forms a ground cover, unique pink early spring flowers, about 6-12" tall.
Wild Strawberry (Fragaria canadensis). Also a good ground cover, about 6" tall, white flowers in spring and tiny edible fruits (not worth eating though, I leave them for the birds).
Wild Petunia (Ruellia humilis). Lavender flowers in summer, about 12".

All these are fairly drought tolerant. If this is a dryish site, you might want to reconsider the Canada Anemone - I think it prefers moist soil.