This hole was open on the K0 engines, and shaped like a "D". In the K1 it received the little rubber plug (well, most of them from the Old Factory and almost all of the New Factory engines did) because the gasket weeped oil there from saturation with hot oil. The oil comes from the scavenge side of the pump, where it picks up hot crankcase oil. Part of this oil is sent here, and the rest back to the oil tank.
If the plug is missing and the gasket is well-sealed, it usually doesn't cause weeps. I've found, though, that if the oil gets real hot, like from 10w40 weight being used, and if the rubber plug is missing (or seriously shrunk from the years) it will again weep around this area, making a mess. I have sometimes gone to the trouble of drilling and tapping this hole shut with a real short, pointed screw (made from a 6mm screw, head cut off) to preserve the oil flow to the countershaft while also helping to seal it from a slightly-warped tranny cover.