There is something about Chiado that makes it so charming and inviting at any time of the day. It may get a little crowded, especially during December or summer holidays, but it still worth a visit (and not a short one). Despite all the tourists, there are good choices of restaurants and cafes that are not traps, unlike the Rossio/Baixa area which is filled with the infamous "tourist traps". Just make sure you check reviews before going. Locals can be seen hanging in the neighborhood too.
Overall, as far as what it has to offer, it is a great area to explore and it will probably leave you wanting to go back again and again.
Tips: don't miss out on Gelado Santini (it's worth it even if there's a line, which is common during summer) and for dining try Sacramento, which also has a good lunch buffet.
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