You drill it and open it more. If I had to guess its to get more flow without having to worry about it vibrating out. Also no matter how far you open a valve if the initial port is too small it will just lean out.
Ive done this to 2 carbs and the before and after is extremely noticeable.
Drilling that hole ensures enough fuel feeds the low needle before metering. Of course you have to pull the welsh plug to clean up because chips go everywhere.