At first glance, it looks like it is inset in the wall. But before you think, "Ah, I don't have a wall alcove," notice that the inset is actually an off-set: a simple structure of dimensional lumber, drywall, and an off-the-shelf shelf (yes, repetition intended) from your local big box home improvement store. It's quick work for a handyman, or a couple of weekends for the ambitious DIY homeowner.
The 4" x 4" tile comes from Daltile, and it's called Copper Tumbled Slate (Compare Prices - Daltile Tumbled Slate). The "tumbled" part means that the edges and corners are rounded off. Yes, this is real stone, too. The surface of this tile has a rough, pitted appearance--attractive if that's your style.