Rabbit Holes are the home and spawning place for Rabbits. They run back to their holes at dusk, or when they are frightened. When a Rabbit is captured or killed, another will eventually respawn from the hole. A Rabbit Hole can be dug up with a Shovel to force a Rabbit out; however, this will destroy the hole, preventing future Rabbits from spawning there. If a Rabbit is caught outside its hole after dark for any reason, it will fall asleep.
A Rabbit Hole will spawn a new rabbit every 2.5 days. Since a Morsel restores 12.5 hunger and the necessary calorie value per day is 75, this means that having access to 15 Rabbit Holes would be enough to sustain oneself through winter ([75/12]*2.5=15). It is also of note that a Rabbit that manages to flee into a Rabbit Hole after i.e. a failed hunting attempt will not trigger the 2.5 days respawn timer. Instead, it will occupy the Rabbit Hole and leave it again (if the conditions are met) after a random amount of time between 1 and 3 real-time minutes.
In the Reign of Giants DLC, during Spring, Rabbit Holes will turn into Collapsed Rabbit Holes and won't spawn Rabbits anymore. A few days after Spring has ended, Collapsed Rabbit Holes will go back to normal and start spawning Rabbits again. A Collapsed Rabbit Hole can be dug up as well to force a Rabbit out, this will also destroy the hole forever.
In Don't Starve Together, digging up and destroying a Rabbit Hole will cause the game to internally trigger a Regrowth Event, which allows for the Rabbit Hole to regenerate itself after 5 days. This effectively makes Rabbit Holes renewable. However, this only applies during Summer and only one Rabbit Hole will be regenerated at a time, while the others will remain queued. In other words, if 4 Rabbit Holes were to be dug up simultaneously, it would take 20 days of Summer to regenerate them all.
Putting a Trap directly above a Rabbit Hole will ensure a captured Rabbit most of the time.
In the base game, multiple traps can be placed after the first trap has caught a Rabbit, to stockpile Rabbits. This is useful during Winter or when one wishes to farm Nightmare Fuel when the Rabbits have turned into Beardlings.