Wood grew up in the town of Cooma, NSW, in a large family. After completing a cadetship on the local newspaper, she went to Charles Sturt University in Bathurst, NSW, where she studied journalism and began writing fiction in her mid-twenties under the tutelage of Joan Phillip. She has worked as a freelance journalist and sub-editor, and her first novel was published in 1999, when she was 34. She notes Kate Llewellyn, Kate Grenville and Patrick White as early influences, and before her first novel was published, she briefly attended writing classes with Sue Woolfe.
Wood is based in Sydney, and has been in residence at Varuna Writers' Retreat and Bundanon on several occasions. She has a Masters degree in Creative Arts from the University of Technology, Sydney and in 2013 was engaged in a PhD, part of which is exploring the psychology of literary creativity. She launched the bi-monthly journal, [The Writer's Room Interviews], in February 2013.
Her 2015 novel, [The Natural Way of Things], swept the Australian literary awards for 2016, winning the Stella Prize, the Indie Book of the Year and Novel of the Year, and the Prime Minister's Literary Award for Fiction (joint winner with Lisa Gorton's [The Life of Houses]).
In 2016, she was named the Charles Perkins Centre's inaugural Writer in Residence at the University of Sydney.