It is a pathetic arrangement to have a fence a the bottom of a slope like this. Since we cannot see the overall arrangement of the property (and the other side of the fence) it's not possible to make suggestions on how to fix.

another pic

Here are a few more pictures...I really appreciate any suggestions. Behind the fence is a smaller slope into a greenbelt with blackberry bushes etc...

I can't tell how much space there is between the fence and the existing lawn, but you could create a 2 tier terrace (which I'm not sure that you have room for after the width of the blocks) or one large retaining wall with a center step to reach each side if you just want a garden. Otherwise, I'd just grow grass and leave it. Put the garden on level land somewhere else.

{{gwi:38441}}

Oh yeah, and I'm not a professional. Please consult a pro before doing this to make sure you have enough strength to hold back the wall of dirt.