The decking is set to be installed on the forecourt of the Barron's Hotel on Hornby Road, in an area previously used for parking but converted to outdoor seating during the Covid pandemic.
But objectors to the scheme told a meeting of the council's planning committee they feared the move would lead to more disturbance in the neighbourhood.
Ian White, of hoteliers group StayBlackpool, warned: "In the last almost 12 months the area has seen a significant increase in issues with anti-socialbehaviour and far more."
‘Devoted’ Blackpool mum, 29, found dead in bed by her boyfriend
Lytham St Annes care home boss appears in court after death of residents
Blackpool FC training ground plans pass first hurdle
Blackpool grandma, 76, conned out of £20,000 by cruel fraud who tricked her into sending cash disguised as Christmas present
Lytham man who made over £500k selling counterfeit car badges ordered to repay ill-gotten gains
He said the Barron's Hotel was a focal point for disruption and called for conditions to be applied if planning permission was granted.
Talbot ward councillor Mark Smith said the biggest concerns from residents and the community were around noise and anti-social behaviour.
He said: "The concerns are it could become a vertical drinking establishment which would cause more noise and disturbance in the area."
Coun Jo Farrell said: "I'm afraid this could set a precedent and we end up with lots of hotels with people sitting outside late at night in what is also a residential area."
But Susan Parker, head of development management at the council, said the hotel was in one of Blackpool's designated holiday areas.
She said controlling behaviour was not a planning issue, but the council had other enforcement powers which could be used should the use of the decked area lead to an increase in rowdiness.
A planning report said while "the primary concern around outdoor seating is noise nuisance to neighbouring properties", the "behaviour of guests and patrons are a matter for the manager of the site to address."
It adds: "Subject to the imposition of conditions restricting the hours of use of the terrace, it is not considered the proposed development would have any unacceptable material planning impacts on amenity."
The committee agreed to approve the application in principle but defer the final decision to planning officers including the attachment of conditions.
These include restrictions to the times when the decking can be used, including only up until 10pm, and the type of landscaping and lighting to be used.