Formatting is a term that Graphic Designers use to indicate how everything on a page is arranged. It includes the size and color of the type, the images used, the backgrounds. That is, everything about how it looks. And while there isn't any secret formula for making formatting appealing, there are a lot of glaring errors that you can avoid, which discourages people from reading. So, have mercy on your poor reader, and make it less difficult for them to actually read what you have written: This is how:
• Keep the formatting and layout simple. There's a template in Blogger actually called "Simple". Use it. If you choose a layout that is all jumbled and confusing, and especially with a background that makes your eyes spin, then it's probably not your writing that is discouraging people, from reading your blog, they're just unable to get past the mess.
• Make the type black, and keep the background light. And by type, I mean the paragraphs. You can make the headlines any color you want, but give your readers a break with the paragraphs. Avoid the temptation to use white on black, or colored type, or having a complex background, or anything like that.
The best design is simple and crisp. You can add a few flourishes later, if you want to, but start with simple. Now, please go get rid of that goofy background and that almost-impossible to read type. Give your readers a break - they want to read your stuff, really!