It will be better than observing from Earth, especially if you observe while in the shadow of the Earth. This is because the atmosphere absorbs some of the light entering the atmosphere, making it harder to see dimmer or further away stars. Like how in fog it is easier to see a objects closer to your than further away.
The atmosphere also scatters light. This affects blue light (shorter wavelength) more than red light, so this will slightly alter the appearance of stars, making them seem slightly red than the actually are (because more blue light is being scattered and is therefore not reaching your eye).
The Earth's atmosphere is also not uniform in density, pockets of different densities move around, as they do so they refract the light randomly. Cold air is more dense than hot air, and the greater the density of the air, the more the light is refracted. This provides the twinkling effectwe see from Earth, and can make stars appear as though they are changing colour slightly.
Additionally some light coming from Earth will reflect off the atmosphere and backdown, drowning out stars, this is the orange glow above cities. It also depends on whats in the air the more dust and particles in the air the more the [negative] effect the atmosphere will have on viewing conditions.
Stars near the horizon on Earth will be even more effected as the light coming from them will have travelled through more atmosphere to get to your eye, than stars directly overhead. This doesn't happen in space either.
This is why telescopes are better placed on mountains (eg Mauna Kea in Hawaii, is the tallest mountian on earth, although not the highest, but there is very little light pollution and the weather is stable) and will get even better quality in space (eg Hubble Space Telescope), because there is no atmosphere to get in the way. So yes the stars will be brighter in orbit and will be clearer without twinkling.
See this question on the NASA site as well