I have put in retaining walls with the castle block style interlocking concrete blocks. Are these actually what you meant or were you thinking mortared together 16" x 8" x 8" dimensional cinder blocks? For some reason my mind went to cinder blocks when you said concrete blocks.
Castle blocks sit on a packed base of crushed stone to level them out as you set them. They're also designed to lock together and work in curves. With these a curve adds strength but a long straight run will be weak and want to lean over to the non-dirt side over time.
I have also put in retaining walls with pressure treated landscaping timbers. The PT differs from standard lumber by only offering a few more years. Construction is the same.
(My opinion) If you're putting in a wooden wall longer than 8 feet or higher than 2 feet you should have fence posts set into the ground on the non-dirt side of the wall then the wall material stacked between the post and the dirt. This way the full strength of the post is holding the wall not just the fastener.
As you don't want modern pressure treated wood there are old school DIY preservatives worth looking into if you go with wood. One I have heard of but not researched is boiled linseed oil mixed with charcoal dust - linseed oil is made from flax seed and charcoal is just burnt wood.
Think about the life time of each material. The biggest cost of this project will be the labor putting it in, not the materials. Trust me it sucks to spend hours rebuilding something in 3 years because I tried to save $100 the first time.
Either material works but both have the limitation that a long straight line will be weak and want to cave over. There were a lot of retaining walls leaning over in the neighborhood I used to live in where everyone had a flatish lawn but the street was on a hill. Then within 10 years everyone spent a lot of money to have someone else replace the walls - most of those houses are 100 years old now.
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For raised beds I prefer setting the garden bed wall a few inches into the soil. I think it gives a cleaner looking line and I don't have soil wash out of voids where the ground dipped a little. Plus it plays into my engineer OCD mind to have the bed set level and square to the other beds but that is a different topic.