1.Login to your blogger dashboard--> layout- -> Edit HTML

2.Scroll down to where you see </head> tag .

3.Copy below code and paste it just before the </head> tag .

<style type='text/css'>
ul {
  list-style: none;
  margin: 0;
  padding: 0;
  }
#menu3 {
  width: 200px;
  border: 1px solid #ccc;
  margin: 10px;
  }

#menu3 li a {
    height: 32px;
    voice-family: &quot;\&quot;}\&quot;&quot;;
    voice-family: inherit;
    height: 24px;
  text-decoration: none;
  }

#menu3 li a:link, #menu3 li a:visited {
  color: #888;
  display: block;
  background: url(http://1.bp.blogspot.com/_4HKUHirY_2U/SwPURj-ZiQI/AAAAAAAAAN8/9leFXbCWnzw/menu3.gif);
  padding: 8px 0 0 30px;
  }

#menu3 li a:hover, #menu3 li #current, #menu3 li a:active {
  color: #283A50;
  background: url(http://1.bp.blogspot.com/_4HKUHirY_2U/SwPURj-ZiQI/AAAAAAAAAN8/9leFXbCWnzw/menu3.gif) 0 -32px;
  padding: 8px 0 0 30px;
  }
</style>

Note : Please Host above image yourself.

4.Save your template.

5.Now Go to Layout-->Page Elements and click on "Add a gadget".

6.Select "html/java script" from header section and add the code given below and click save.

<div id="menu3">
<ul>

<li><a href="#">Home</a></li>
<li><a href="#">HTML</a></li>
<li><a href="#">CSS</a></li>
<li><a href="#">Java Script</a></li>
<li><a href="#">Photoshop</a></li>
<li><a href="#">About</a></li>
<li><a href="#">Contact</a></li>

</ul>
</div>

You are done.It will look like this:

CSS Vertical Menu Tutorials-Menu 3

Demo