Based on the principle of mud pressure balance earth pressure, this paper establishes a mechanical model for analyzing the stability of pile hole, and analyzes the applicable conditions and application scopes of the three construction methods, namely, no-support excavation, the hole formation method by mud retaining wall, and the hole formation method by hard support. It also provides reasonable determination methods for maximum depth of pore-creating without support, lower limit value of mud weight of protecting wall, and useful tables. The research results show that the friction angle, the cohesion, and the mud weight of soil are basic factors for maintaining the stability of the pile hole. When the depth of pore-forming is less than the maximum depth of pore-creating without support, no-support excavation can be adopted. Otherwise, hole-forming should be assisted by slurry-support, and mud weight should not be less than the lower limit value of mud weight for the retaining wall determined by the site soil. When the friction angle is greater than 25°, mud weight can be arbitrarily selected. When the lower limit value of mud weight for the retaining wall calculated by look-up table is greater than the maximum mud weight given by specification, casing or other hard support measures should be adopted.