If it's above the water line, water will spit out of it. Mine are in an AGA standard overflow, above the water line (in the 90-degree elbow, underneath) and water dribbles back into the overflow box - not an issue in that instance.
If it's just below the water line, then if/when water back-siphons, it will do so until that hole is exposed to air, then the air will break the siphon.
IMO submerged holes are more prone to clogging. I use a bent paper clip or a set of dental instruments (purchased for ~$5 at Harbor Freight tools) to clear them periodically as part of routine tank maintenance.
Even exposed holes can get
salt creep or algae build up on them, so be sure to inspect and clear them regularly.
Another option is to install a clear true-union check valve on your return.. I use these in several applications - easy to clean and service as they are clear and you can see inside them, and they have unions on either side so you can remove and clean them easily.
HTH
Jenn
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LFS Owner:
Imagine Ocean

Just keep skimming, just keep skimming, just keep skimming, skimming skimming! What do we do? We skim, skim, skim!