There are many fabulous ideas for DIY yarn holders all over the web. Here is how I make my humble holder. I use large plastic containers with screw-on lids and also oatmeal containers. One advantage to this re-purposed mixed nut container is that the lid is more secure than the plastic snap-on oatmeal container lids.
To make a hole in the lid, I used a 3/8" drill bit and then enlarged the hole with a rat tail file to fit the 1/2" grommet. Any size and type of grommet can be used but I've had this grommet kit hanging around for years so why not use what it available for free? The inner edge is smooth and does not snag the yarn.
Thank you for letting me share this project -
Ellen