The hole is for my pinky finger. I have one in all my equipment.
I happened on it by accident when I bought a used ball off someone and the ball had one drilled in it already. I've never gone back.
It has several advantages for me. Probably the biggest is that it helps stabilize the ball in my hand during the swing. The ball no longer tries to shift laterally or try to fall sideways off my hand one way or another.
It also redistributes the weight of the ball across three fingers rather than two, which cuts down the stress load for the middle and ring fingers.
I also get a few more revs out of the deal, and I feel I'm better able to project the ball down the lane.
It's a winning situation all the way around.
Jess