As for lighting, look for a room in your home or a shaded area outside that has good indirect light. Multiple light sources are preferable, so if you have a corner room with windows on two sides, that's ideal. If you can, elevate your project to the height of the window. This might mean putting your chair on top of a table (or something else) or using a bar-height chair or stool.
For additional lighting, try using a piece of white posterboard or foamcore to reflect light onto your project. Hold the posterboard facing the primary light source, then angle the board until you can see the reflected light illuminating your project. It's subtle, but you'll be able to see it. What you're doing is basically creating a low-cost version of the big photographer's umbrellas. In this picture, I'm using a 13x13 white clipboard. (See Photo 1.)
In case it's helpful, I've attached a picture of my set-up. The room I use has a bay window in the front and two windows on one side. I position my projects on the surface of a piano that sits right in the bay window. (See Photo 2.)