I'm on windows 10, Andorid Studio 2.3.3, I created a an android avd with the below configuration but the display won't scale properly, the display will be only in a corner.
Name: 4_WVGA_Nexus_S_API_23
CPU/ABI: Google APIs Intel Atom (x86)
Path: C:\Users\user\.android\avd\4_WVGA_Nexus_S_API_23.avd
Target: google_apis [Google APIs] (API level 22) Skin: 480x800
SD Card: C:\Users\user\.android\avd\4_WVGA_Nexus_S_API_23.avd\sdcard.img hw.dPad: no
runtime.network.speed: full
hw.accelerometer: yes
hw.device.name: 4in WVGA (Nexus S)
vm.heapSize: 48
skin.dynamic: yes
hw.device.manufacturer: Generic
hw.gps: yes
hw.initialOrientation: Portrait
skin.path.backup: _no_skin
image.androidVersion.api: 22
hw.audioInput: yes image.sysdir.1: system-images\android-22\google_apis\x86\
tag.id: google_apis
showDeviceFrame: no
hw.camera.back: emulated
hw.mainKeys: yes
AvdId: 4_WVGA_Nexus_S_API_23
hw.camera.front: emulated
hw.lcd.density: 240
avd.ini.displayname: 4
WVGA (Nexus S) API 23 hw.gpu.mode: auto
hw.device.hash2: MD5:380daa949ffbfa516f53f3f58637c4b3 hw.ramSize: 512
hw.trackBall: no PlayStore.enabled: false hw.battery: yes
hw.cpu.ncore: 2
hw.sdCard: yes
tag.display: Google APIs
runtime.network.latency: none
hw.keyboard: yes hw.sensors.proximity: yes disk.dataPartition.size: 800M
hw.sensors.orientation: yes
avd.ini.encoding: UTF-8
hw.gpu.enabled: yes

Any idea on how the scaling issue can be resolved ?
Ok so you need to disable windows 10 scaling for this app. While its running find it in task manager.
Right click on "Android Emulator - [Device Name]"
and chose open file location. You should now see the folder with the emulator exe highlighted.
Now Right click on the exe and open properties. Then go to the "Compatibility" tab.
Now open "Change high DPI settings". Here's where the magic happens. Use these settings, Of note is scaling preformed by "System" this means that we wont trust qemu to do the scaling (which it ignores and causes the problem) 
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