Prepare grill for indirect cooking over medium-high heat (no direct heat source under meat loaf).
In a large bowl, combine ground beef, bread crumbs, cheese, 1/4 cup of the salsa, the egg, cilantro, garlic, and taco seasoning. Poke several holes in bottom of an 8 x 4 x 2 1/2"-inch foil loaf pan. Shape meat mixture to fit loaf pan; place in pan. Spread the remaining 1/4 cup salsa over meatloaf; top with bacon.
Place on grill over drip pan; cover grill. Cook for 45 minutes to 1 hour or until internal temperature reaches 160. Transfer meatloaf to cutting board and let stand for 10 minutes. Remove from loaf pan and slice. Serve warm.