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 .

<script src='http://ajax.googleapis.com/ajax/libs/jquery/1.3.2/jquery.min.js' type='text/javascript'/>
<script type='text/javascript'>
//<![CDATA[

/*
* jQuery Color Animations
* Copyright 2007 John Resig
* Released under the MIT and GPL licenses.
*/

(function(jQuery){

// We override the animation for all of these color styles
jQuery.each(['backgroundColor', 'borderBottomColor', 'borderLeftColor', 'borderRightColor', 'borderTopColor', 'color', 'outlineColor'], function(i,attr){
 jQuery.fx.step[attr] = function(fx){
  if ( fx.state == 0 ) {
   fx.start = getColor( fx.elem, attr );
   fx.end = getRGB( fx.end );
  }

  fx.elem.style[attr] = "rgb(" + [
   Math.max(Math.min( parseInt((fx.pos * (fx.end[0] - fx.start[0])) + fx.start[0]), 255), 0),
   Math.max(Math.min( parseInt((fx.pos * (fx.end[1] - fx.start[1])) + fx.start[1]), 255), 0),
   Math.max(Math.min( parseInt((fx.pos * (fx.end[2] - fx.start[2])) + fx.start[2]), 255), 0)
  ].join(",") + ")";
 }
});

// Color Conversion functions from highlightFade
// By Blair Mitchelmore
// http://jquery.offput.ca/highlightFade/

// Parse strings looking for color tuples [255,255,255]
function getRGB(color) {
 var result;

 // Check if we're already dealing with an array of colors
 if ( color && color.constructor == Array && color.length == 3 )
  return color;

 // Look for rgb(num,num,num)
 if (result = /rgb\(\s*([0-9]{1,3})\s*,\s*([0-9]{1,3})\s*,\s*([0-9]{1,3})\s*\)/.exec(color))
  return [parseInt(result[1]), parseInt(result[2]), parseInt(result[3])];

 // Look for rgb(num%,num%,num%)
 if (result = /rgb\(\s*([0-9]+(?:\.[0-9]+)?)\%\s*,\s*([0-9]+(?:\.[0-9]+)?)\%\s*,\s*([0-9]+(?:\.[0-9]+)?)\%\s*\)/.exec(color))
  return [parseFloat(result[1])*2.55, parseFloat(result[2])*2.55, parseFloat(result[3])*2.55];

 // Look for #a0b1c2
 if (result = /#([a-fA-F0-9]{2})([a-fA-F0-9]{2})([a-fA-F0-9]{2})/.exec(color))
  return [parseInt(result[1],16), parseInt(result[2],16), parseInt(result[3],16)];

 // Look for #fff
 if (result = /#([a-fA-F0-9])([a-fA-F0-9])([a-fA-F0-9])/.exec(color))
  return [parseInt(result[1]+result[1],16), parseInt(result[2]+result[2],16), parseInt(result[3]+result[3],16)];

 // Otherwise, we're most likely dealing with a named color
 return colors[jQuery.trim(color).toLowerCase()];
}

function getColor(elem, attr) {
 var color;

 do {
  color = jQuery.curCSS(elem, attr);

  // Keep going until we find an element that has color, or we hit the body
  if ( color != '' && color != 'transparent' || jQuery.nodeName(elem, "body") )
   break;

  attr = "backgroundColor";
 } while ( elem = elem.parentNode );

 return getRGB(color);
};

// Some named colors to work with
// From Interface by Stefan Petre
// http://interface.eyecon.ro/

var colors = {
 aqua:[0,255,255],
 azure:[240,255,255],
 beige:[245,245,220],
 black:[0,0,0],
 blue:[0,0,255],
 brown:[165,42,42],
 cyan:[0,255,255],
 darkblue:[0,0,139],
 darkcyan:[0,139,139],
 darkgrey:[169,169,169],
 darkgreen:[0,100,0],
 darkkhaki:[189,183,107],
 darkmagenta:[139,0,139],
 darkolivegreen:[85,107,47],
 darkorange:[255,140,0],
 darkorchid:[153,50,204],
 darkred:[139,0,0],
 darksalmon:[233,150,122],
 darkviolet:[148,0,211],
 fuchsia:[255,0,255],
 gold:[255,215,0],
 green:[0,128,0],
 indigo:[75,0,130],
 khaki:[240,230,140],
 lightblue:[173,216,230],
 lightcyan:[224,255,255],
 lightgreen:[144,238,144],
 lightgrey:[211,211,211],
 lightpink:[255,182,193],
 lightyellow:[255,255,224],
 lime:[0,255,0],
 magenta:[255,0,255],
 maroon:[128,0,0],
 navy:[0,0,128],
 olive:[128,128,0],
 orange:[255,165,0],
 pink:[255,192,203],
 purple:[128,0,128],
 violet:[128,0,128],
 red:[255,0,0],
 silver:[192,192,192],
 white:[255,255,255],
 yellow:[255,255,0]
};

})(jQuery);

//]]>
</script>

<script type='text/javascript'>
//<![CDATA[

var hoverColour = "#FFF";

$(function(){
$("a.hoverBtn").show("fast", function() {
 $(this).wrap("<div class=\"hoverBtn\">");
 $(this).attr("class", "");
});

//display the hover div
$("div.hoverBtn").show("fast", function() {
 //append the background div
 $(this).append("<div></div>");

 //get link's size
 var wid = $(this).children("a").width();
 var hei = $(this).children("a").height();

 //set div's size
 $(this).width(wid);
 $(this).height(hei);
 $(this).children("div").width(wid);
 $(this).children("div").height(hei);

 //on link hover
 $(this).children("a").hover(function(){
  //store initial link colour
  if ($(this).attr("rel") == "") {
   $(this).attr("rel", $(this).css("color"));
  }
  //fade in the background
  $(this).parent().children("div")
   .stop()
   .css({"display": "none", "opacity": "1"})
   .fadeIn("fast");
  //fade the colour
  $(this) .stop()
   .css({"color": $(this).attr("rel")})
   .animate({"color": hoverColour}, 350);
 },function(){
  //fade out the background
  $(this).parent().children("div")
   .stop()
   .fadeOut("slow");
  //fade the colour
  $(this) .stop()
   .animate({"color": $(this).attr("rel")}, 250);
 });
});
});

//]]>
</script>

<style type='text/css'>
div.hoverBtn {
position:   relative;
float:   left;
background:  #000000 url(https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6w21amfUBx5QgFifQmTpjlTDbe7khPjhPXlmAbBRoNYljp5wKrXj1rL0rx5ykUF9YSOOZMTBbIl5_ANp3slMh2Fkt3UqjAC1UJ3l_WV0F8Ndu857ThnEZaPILBN1162GDyeV-DI1d3gJb/) repeat-x 0 0 scroll;
}
div.hoverBtn a {
position:   relative;
z-index:   2;
display:   block;
width:    100px;
height:   30px;
line-height:   30px;
text-align:   center;
font-size:  1.1em;
text-decoration: none;
color:   #000;
background:  transparent none repeat-x 0 0 scroll;
}
div.hoverBtn div {
display:  none;
position:   absolute;
z-index:   1;
top:    0px;
background:  #ffffff url(https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjqXQ1cnoh1kpPVXv52GyUXbfl_Z_xs-lFRYkUywJ9YcTq2tmaqtxA3SbjoCD9jqJo9yiTP2tj5PXqX0AJ6dOj70EK6B1c71sCD1Ha7foFIVFgqQBU884DwgM3QSiczIdmjdzlYB_J33sC/) repeat-x 0 0 scroll;
</style>

NOTE: Please host images yourself.

4.Now go to Layout-->Page Element and click on "Add a gadget" from header section.

5.Select "html/java script" and add the code given below and click save.

<a class="hoverBtn" href="#">Home</a>
<a class="hoverBtn" href="#">HTML</a>
<a class="hoverBtn" href="#">CSS</a>
<a class="hoverBtn" href="#">About</a>
<a class="hoverBtn" href="#">Contact</a>

You are done.