Landmannalaugar is a hiking paradise and this is one of my favourite hikes in Iceland. Start by going up Bláhnjúkur, it's quite steep and great views from the top. Then follow the trail down the backside and into the valley. When the trail turns right and hugs the mountain, you can go out on a ridge and find this photo location.

Then follow the trail back to Landmannalaugar. It goes through a lava field which need a bit of balance to navigate. Finish the day in the hot spring :)