Regarding the question of whether this recent construction is related to the Ontario Line, I doubt it. It looks to me like a waiting area for buses. In the past, a bus would pull up to a bus bay at a terminus and let everyone out, others would start to get on, while the driver would leave the bus to use the restroom and/or take a smoke break. If another bus pulled up, and the first driver isn't there, sometimes the second driver may get impatient and honk his horn to get the first to come back. In response to this, over the last decade, it's been TTC practice to let the passengers out, the bus is then driven to a holding area, the driver takes a break, then gets back in, pulls up to the platform, lets passengers in, and then leaves quickly. So I think they decided at the last minute, that a big waiting area for buses is needed.
The area in question, as well as the station itself, used to be a small forest. After the station was built, the area in front became a big lawn. Now it's paved over for buses to park on. I suppose it's inevitable. If it hadn't been paved, the lawn would have turned into a condo.