The pattern reads to continue with the ribbing for 6 sts then YO. K2tog (rib 8 sts, YO, K2tog) 4 times and then finish the ribbing. I have tried it and it doesn't seem that the YO, K2tog don't create a button hole. Am I supposed to work it in there myself? Or should that do it? Help!

On the next row, when you knit the yo stitch, you will see that there is a hole there--that's the buttonhole.

That buttonhole is sometimes referred to as an eyelet because it's very small. Not always apparent as it's being worked. Often used on baby and toddler apparel.

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