We stayed at Pahaska Tepee during our trip last year. It's right outside Yellowstone East gate, perfect if you're visiting the park for a few days. We met the owner and had several discussions with other workers there. They were nothing but hospitable and gave us good advice regarding fishing holes that survived the flooding and where to watch bears at night. The restaurant has some really good food, albeit a touch pricey.
We also rode horses at Bill Cody Ranch. It included lunch on the mountain with fantastic views to Bill Cody Reservoir and up into the Absarokas. It looked like a nice place to stay and the ranch hands were great. Our lead rider was from Alabama, and the other two were from Bozeman. All were incredibly nice young men that clearly enjoyed their summer jobs.
The only time we really felt far from Cody was after the rodeo, simply because it was later at night. Even still, it was only 45 minutes to get back to the cabin.