If erosion is a problem in your lawn, regrading the terrain is an option. Swales and terraces cut into the landscape divert the natural flow of water and eliminate the need for a retaining wall. Other options include planting trees and shrubs to hold the soil in place. Boulders can also be placed strategically to serve as an erosion barrier.
You have a variety of retention options in a garden. Bulbs, annuals, perennials, ground covers, vines, shrubs and trees can all be used. Native species should be selected when possible, as nonnative species tend to outcompete other plants. Native species are also more drought-tolerant and are generally deeper-rooted than nonnative species. Ground covers like ivy, pachysandra and vinca are all vigorous growers and excellent for soil retention. For slight slopes, a layer of mulch or gravel can help to prevent erosion. Use mulch or gravel in addition to or instead of plantings.
In agricultural acreage, retaining walls are just one option. The remains of a harvested crop can be left in place until it's time to till in the spring. This will help to hold the soil in place between seasons. Avoid the practice of deep plowing in favor of shallow tilling when it is time to prepare the soil. This leaves deep roots intact, which helps to keep the surface soil in place. A wind barrier of evergreen trees can also help to prevent erosion.
Any material used for retention on a steep slope -- whether it's straw bales, limbs, rocks or any other nonliving resource -- needs to be properly installed to ensure that it remains in place. For materials that are exposed to frequent erosion and runoff, it is best to bury the bottom layer a third to halfway into the ground. Any subsequent layer should be slightly set back atop the bottom layer, leaning into the slope. For a steep slope, several small layers should be stacked up the face of the slope.