This place name I have heard of more than once, and like so many place names this one has a story behind it. And of course this story is about the coyotes digging holes; so if one understands why they dig these holes in the desert, they will understand the coyote better, and this of course will lead to better understanding of the entire ecosystem. To start with, the coyote is one of the top predators of the Southwest and he is everywhere all the time, yet rarely seen because the coyotes can see, hear, and smell their way through the environment in ways that make them invisible to predator and prey alike. While he is truly a well-adapted desert animal, he must have water to drink on a regular basis unlike some of the other desert creatures such as the jack rabbit or the kit fox. And so the coyote is digging machine by necessity, because it needs to get to the water.
I have seen holes dug by coyotes as big as five feet across and three feet deep, many times.