One of many slang terms for the vagina, or more generally, for the pubic area where the clitoris also resides.

I first was introduced to this term while watching Pulp Fiction. Samuel L. Jackson refers to the female vagina in that manner while talking to John Travolta in an upper-floor hallway of an apartment building as they get ready to go dust some suckas. It wasn't until I read the posting next to this one (by Kartoffl) that I recognized the implicit pun on the word hole. Nice. And it's a double-word score at that.