Stake out the area where you will build the wall. Place pairs of wooden stakes across from each other, each about half the width of the wall from where the actual edge will be so that you can work between them without hitting them as you dig. Excavate the designated area, removing all grass and plants and digging down 8 to 10 inches; be sure dig to a uniform depth and make the bottom level.
Look through your supply of dry stones and select the largest, flattest rocks available to you. Lay these rocks along your excavated base, about 1 to 1 ½ inches apart. Pour loose gravel into the spaces between the rocks and evenly around the perimeter of the excavation.
Lay the second-largest stones as your next layer. Place these stones over the gaps between the rocks beneath, so that each one is supported by two base rocks. Fill in the spaces between these dry stones with smaller stones or stones split with a hammer and cold chisel.
Continue stacking dry stone in descending sizes until your wall is approximately 3 feet tall. Try to direct any slope toward the center so that the wall is very slightly V-shaped. Fill in gaps with stones split to size, gravel or soil.
Decide whether you want a more finished top edge on your wall. You can achieve this by placing a line of cap stones -- very large, heavy dry stones -- along the top. Have someone assist you as you place these stones, if you use them.