There are a few possible reasons why there are small holes in your yard: from insect infestations such as wasps and beetles; wildlife animals like squirrels, rabbits, and chipmunks; and rodents and pests such as voles and moles. Both insects and vertebrate yard pests create holes in your yard that disfigure or kill off grasses surrounding the remaining lawn. As you will soon discover, eliminating them completely begins with proper identification of the problem.