This tools will show how to create a hole in a polygon on a same layer. I am using ArcGIS 10.3
1. Add the shapefile to the ArcMap, then start editing.
2. I have created a rectangle polygon to show how we can create a hole in a same polygon layer.
3. Again on the same editing session, I will create a circle on the top of the rectangle. Leave the circle selected.
4. No go to the Editor > Clip
5. Select the check box “Discard the area that intersects” and then press Ok
6. Then select the circle and press “delete”, which will discard the circle from the polygon leaving a big hole on it. Stop editing to save your work.