1slang A hiding place or refuge.
2slang, historical Specifically. In the First World War (1914–18): a hole in the ground used by troops as a shelter against enemy fire or as a firing point.
3slang, derogatory, historical, rare In extended use: a place of employment or an occupation which is used as a pretext for evading military service.
Early 20th century; earliest use found in The Daily News. From funk + hole.