Wondering if setting up a dirt hole on the bottom of this embankments is practical for coyote? Haven't had a chance to go about testing myself and figure someone here already knows the answer.

I do it all the time. Just don't crowd them. Set on the outside points not the inside corners.

I do it for red fox where terrain allows if I'm seeing good sign. It works but dirt holes in flatter areas with minimal backing seem to produce better.

pee post might work better than a dirt hole on the outside point

I find natural holes in the banks all the time .
Most predators inpect them. This is what I prefer to set if I have the option.
Especially when the ground is frozen.
In good settings conditions I like a big hole on the steep banks .
A tile spade works good for this in soft ground.

From your picture it looks like you have some perfect snairing condition there.
If that's an option for you that's the route I'd take.

I use embankments quite a bit especially if there’s a trail or fresh sign near by. Coyotes and bobcats around here use the arroyos( dry sandy waterway) as travel routes. I make big flashy dirthole sets in the arroyo embankment a lot. Like others have said, set it on an outer point. I think coyotes work a set better when they can see around them and don’t feel crowded.

I have made sets in similar embankments, slight higher ones, but had no success with coyotes. Caught coon in them, but no canines. More gentle slopes, like in Savell's pic, worked better for me.

Okay thanks for the tips guys. I got 4 footholds to play with so I'll set them in a couple different places.

Same here EdP