Not exactly. The direct translation for "I dig a hole" is "Yo cavo un hoyo" which maps all words one to one. A more general translation "yo hago un hoyo" (verb. to make), removes the need for the hole to be dug and can be used for holes you cut or rip as well. There are very few cases where you are not better served by the verbs to dig or to make, and I don't think I've ever heard anyone use ahoyar before.
It means "I dig the hole(s)"
Example: Yo ahoyo, tu plantas -> I dig the hole(s), you plant [the tree(s)]