Lace Eyelet Stitch (yo, k2tog)

Intermediate Lace

Simple paired yarn-overs and decreases that create small, evenly spaced holes.

Cast on a multiple of 4 stitches, plus a few extra for a clean edge.
Work several rows in stockinette stitch (knit on RS, purl on WS) as a base.
Eyelet row (RS): Knit 2, *yarn over, knit 2 together, knit 2; repeat from * to the last 2 stitches, knit 2.
Continue in stockinette for several more rows.
On the next eyelet row, offset the repeat by 2 stitches from the previous eyelet row, so the holes stagger into a brick-like pattern rather than stacking in columns.
Repeat, alternating straight and offset eyelet rows at your chosen row interval.

A yarn over always needs a matching decrease (like k2tog) somewhere in the row, or your stitch count will grow every eyelet row.
Staggering eyelet rows rather than stacking them in straight columns gives a more traditional, less overtly "holey" lace look.
Block lace pieces after finishing — eyelets open up and even out dramatically once the fabric is stretched and pinned to dry.