In a gracious covenant, the promised blessings are received on the basis of grace, not based on obedience to the covenant's commands. Gracious covenants still contain laws and commands, but the order of “live” and “do this” are reversed in comparison to a works covenant. There are two covenants in the Bible that should be considered gracious covenants: the Noahic Covenant, and the New Covenant.
When considering the covenants, we should notice that the presence of grace within a covenant relationship with God and man does not make a covenant properly understood as a gracious covenant. When we say a covenant is gracious, we aren't simply recognizing that God's grace exists within it — after all, everything that comes from God comes through grace. Instead, what we mean when we say a covenant is gracious is that its blessing comes on the basis of grace.
We should also notice that a covenant being gracious does not make it The Covenant of Grace. There is only one Covenant of Grace. Its parties are God and the elect, its terms are grace, and its promise is eternal life. The only covenant that meets all of these criteria is the New Covenant itself. Therefore, while all covenants involve God's gracious condescension, and two covenants should be considered gracious, only The New Covenant should be called The Covenant of Grace.