Primero calcule la década para cada fila
select floor(year(`year`) / 10) * 10 as decade
from tbl_people
y luego use este resultado intermedio para contar SQL Fiddle
select count(*), decade, decade + 9
from (select floor(year(`year`) / 10) * 10 as decade
from tbl_people) t
group by decade
o este SQL Fiddle , si quieres la década en una columna
select count(*) as count, concat(decade, '-', decade + 9) as year
from (select floor(year(`year`) / 10) * 10 as decade
from tbl_people) t
group by decade