You do not do so directly, since it is part of the chart. You can move it to various locations within the chart box. If you want to display a legend outside the chart box, you can delete the legend from the chart box and type in anything you want into cells near where you position the chart. Be aware that if you delete the legend from the chart box, you no longer will be able to update the legend when the chart changes, unless you draw the contents of the cells holding the legend data from the same location as you get the data for the chart graphic.
The legend identifies the colors that represent the bars.
Not necessarily. You can have two versions of Excel on one computer.
At the bottom left hand corner.....
legend
In some cases it is, e.g. Microsoft Excel graphs.
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If you change the colours for the items on the chart that the legend is showing to have shading, then you the legend will change too. You can also change the background of the legend itself, by right clicking on it and select the Format Legend option and then the Fill option.
Excel does not have a specific chart area. You might be referring to the area within a chart where you can change the legend and other information. You will find chart tools on the Insert tab of the Excel 2007 ribbon.
You don't
Dynamite
You can not merge excel documents into notepad, but you can copy data from Excel and paste it into notepad if you want to remove all of the formatting and have only plain text.