Covering the stone on a fireplace

I have a corner stone fireplace that is heavy looking and dates my home. Can drywall be placed over the stone or does it have to be taken off? I want a sleeker updated look.

The short answer is yes, you can cover the stone.  Be careful not to place anything combustible within 9 to 12" of the firebox opening.  This does include drywall and any furring strips you might apply to the stone to attach the drywall to.  On most fireplaces, the surround on a fireplace is added after the walls are built, so you could consider removing the stone surround and "starting over" with a new finish.  This could be a tile, marble, granite slab or any other type of non-combustible material.  We removed stone surrounds before, depending on the amount of stone, it can be done.  It will be a very dusty job, so put up the dust curtains.  Good luck.