tl;dr - add html, body {height:100%;} to your CSS.
Percentage values in CSS are inherited from some ancestor that already has height declared. In your case, you need to tell all parents of your sidebar to be 100% height. I'm assuming that #sidebarBack is a direct child of body.
Essentially, your code above is telling #sidebarBack to be 100% height of its parent. Its parent (we are assuming) is body, so you need to set height: 100%; on body as well. We can't stop there, however; body inherits height from html, so we also need to set height: 100%; on html. We can stop here, because html inherits its properties from viewport, which already has a declared height of 100%.
This also means if you end up putting the #sidebar inside another div, then that div also needs height:100%;.
Here is an Updated JSFiddle.
Changed your CSS to:
html, body {
height:100%;
}
#sidebar {
background: rgba(20, 20, 20, .3);
width: 100px;
height: 100%;
left: 0;
float:left;
}
section#settings {
width:80%;
float:left;
margin-left:100px;
position:fixed;
}