A data storage device is disclosed comprising a disk comprising a plurality of data tracks, and a head actuated over the disk. A retry operation for a target data track is performed by positioning the head at a first radial location and first erasing at least part of a first data track adjacent the target data track. After the first erasing, the target data track is first read to first recover target data recorded in the target data track. When the first recovery fails, the head is positioned at a second radial location and more of the first data track is second erased. After the second erasing, the target data track is second read to second recover the target data recorded in the target data track.