A stepped hole has two (or more) diameters through the depth of the hole, giving the impression of a step at the transition point where the diameter changes. You can create stepped blind holes and stepped through holes.

In a stepped blind hole the farther the step from the start of the hole, the smaller the diameter. That is, a step must have a smaller diameter than its predecessor.

A stepped through hole is made from two stepped blind holes that start from opposite directions and meet each other. That is, the diameters first decrease and then increase after a through hole step.