How does the hole wizard work?
Here's a brief write-up/rant.
Start the hole wizard. Then pick what type of hole you desire; Counterbore, Countersink, Hole, Straight Tap, Tapered Tap Hole or legacy. For the sake of this tutorial I am going to choose Tapped hole. Then you select your standard, usually Ansi Inch or Ansi Metric. It then asks for what type. For pipe threads pick straight pipe tapped hole. If you are concerned about the drill depth being too long pick bottom tapped hole, otherwise pick tapped hole. Now pick your thread size. End condition can get tricky when doing a blind hole try to stick to entering how much thread you want (the second option). It will then calculate the drill depth needed to be able to tap the hole. If you change one and the other doesnt change you have a problem. If that happens, reset to default find the difference between the two and apply it to your desired dimension. You usaully want to check with thread callout, class is up to you.. as well as countersinks.
Next you will select a plane or planer surface on which to put the holes. SolidWorks adds a sketch point, which indicates where the hole is to be drilled. Now you need to define where you would like the hole to be you can do this by using references to existing geometry, using construction geometry, or by adding dimensions.
I have added two dimension which fully define the placement of the hole. Once you are satisfied you may hit the green check.
The hole wizard is a very powerful tool and has a lot of the standards built in. It let's users know there is a certain type of hole instead of just extruding a circle (bad practice).
On a drawing use the Hole Callout for such holes, instead of smart dimension.
It prevents you from missing important features, and not providing enough info.