The daughter of the Royal Hotel owner/manager Eric and his wife Marion (née Phillips), Hodge attended Wintringham Girls' Grammar School on Weelsby Avenue in Grimsby and then St. Helen's School, Northwood, Middlesex; before attending Maria Grey College (became West London Institute of Higher Education in 1976 then the Twickenham campus of Brunel University from 1995–2005), Twickenham to train as a teacher. She taught English and drama at Russell County Primary School in Chorleywood, Hertforshire, whilst also applying to London Academy of Music and Dramatic Art,. She started at LAMDA when she was 22, being awarded on graduation the Eveline Evans Award for Best Actress.