Since the caked-on dirt can dull a shovel's edges over time, sharpen it with a hand file or an angle grinder. Start by cleaning the spade thoroughly, using WD-40 if it's rusty.
If you're sharpening with a utility file, work along the edges of the spade so that it keeps the angles intact. The whole process should take about ten to fifteen minutes.
If using an angle grinder, keep the blade spinning away from your body and gently allow the grinder to do the work. Once done, you can also file the edges with a mill bastard file.
For safety, secure the shovel's head in place with some strong clamps, and ensure the spade is horizontal (blade up) so that you don't have to do a lot of bending while you work.