There are numerous reasons why a dog might start and continue digging up your yard. These can include the need to bury something, to retrieve something buried earlier (somewhere), to try and catch a burrowing animal, to create a cool spot to lie down in or even a sleeping area, and to escape.
Dogs that start digging from a very early age, become some of the more determined and relentless diggers. So, how can we deter the dog that is determined to dig?
There are a number of temporary and more permanent solutions available. We will start with the temporary solutions so that you can action them whilst looking into which permanent solution is going to best suit your situation. The temporary solutions are good for short term results in stopping the dog from continuing to dig, where the permanent solutions are great for stopping the dog from digging up the same garden, and for excluding the dog from certain areas where he once enjoyed digging.
There are two temporary options that obtain some decent results. The first simply involves using a balloon. Simply inflate the balloon to snugly fit in a pre-existing hole and then cover over with the fresh soil. Natural curiosity will have the dog re-digging the hole shortly. As the dog does this, his paws will 'POP' the balloon giving him a startle. This will keep him from digging anymore for the next little while. Ensure that you pick up the balloon pieces.
Another option is to place dog poo in the holes your dog has already dug up. The majority of dogs dislike having poo on their paws and will avoid digging in that hole again. The only downside, is that it doesn't stop new holes from being established, but it can definitely curb holes from being enlarged.
There is also the Contech Scarecrow, a motion driven device that shoots a burst of water every time an animal passes in front of it. This will prevent the dog from even getting started on the hole - unless, of course, he enjoys digging in the rain.
Now to the permanent results, you may have heard of the 'Invisible Dog Fence', this now encompasses far more then the simple transmitter, collar and wire approach of a year or so ago. The great thing is that ease of use has been well maintained during some great product development. For smaller areas, there is an item referred to as a PetSafe Pawz Away Outdoor Pet Barrier. It resembles a rock, is waterproof and is some great options in making this system work in your garden.
For a larger area like a house block or larger, you are probably best to consider a full invisible dog fence, also known as a containment system.