Dig the soil in the bare spot to loosen the top layer 6 inches deep. Use the blade of the shovel to break apart large clumps in the topsoil.
Spread out a tarp onto the ground. Pour out 1 cubic foot each of peat and topsoil onto the center of the tarp. Mix the peat and topsoil together into an even consistency, using a shovel.
Spread out a 4-inch-deep layer of the peat mixture over the loosened, bare area. Dig the area once more to blend the peat mixture and ground soil evenly.
Plant directly into the bare spot with seedlings of annuals, perennials, vegetables or other plants, if desired, to form a garden bed. Plant full sun or shade plants, depending on how much light the planting spot receives.
Spread grass seed over the loose soil to convert the bare patch into lawn. Sprinkle a ¼-inch-thick layer of solely peat over the seeds. Water the bare patch as often as needed to keep the peat moist and allow the seeds to germinate.