I really need to re-grade my yard because the neighbor raised their grade and it causes water pooling along the lot line.
I had heard that you can’t add additional soil on top of a leach field or it won’t dry out.
Is that true?
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No
It likely depends on your local authority having jurisdiction over septic installations AND exactly what the depth of added soil will be.
Leach fields are best located close to the surface because that's where the most aerobic biological activity is that mitigates the effluent. Deep leach fields become anaerobic (i.e. little oxygen) which inhibits the breakdown of the effluent.
If you're increasing the soil cover over the septic tank only, you may be okay IF the tank's cover can safely handle the weight of the added soil.