Maybe your finger is just bigger than mine, but I have a hole there just like that in one of my skimmers. It has a 1/2 pipe that goes back to the equipment pad and allow we to fill the pool via an automated valve. In my other skimmer, the same hole is plugged.
Just guessing, but could it be a secondary inlet as a safety feature to prevent too much vacuum causing a small child etc. getting stuck to the skimmer if they lean up against it or in it?
It is an overflow. That is a standard location of installing one. In a rare case that could be a filler line to add water to the pool but that is much less likely.
The water level should not be that high if that is an overflow. If you have an autofiller, check to make sure it isn't stuck open and you are dumping water down the drain.
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