What's the best way to get rid of or smooth out a hole on tip of nose? (Photo)

The skin on the tip of the nose is typically very sebaceous, meaning that it contains oil glands.  Deep scars in this area are not likely to improve with techniques such as subscision or dermal fillers.  The scar could be excised, but along the tip of the nose it would require additional surgery to reconstruct the hole and likely leave more of a scar than you started with.  I would recommend skin resurfacing.  In this case, dermabrasion of the nasal tip subunit (and possibly surrounding subunits) may be the best method because it allows your surgeon to blend this area in with the surrounding skin.  Laser and chemical peels are other methods of resurfacing, but may not be as reliable to treat this single area.  This answer is no substitute for a face to face consultation, so make sure to consult with a facial plastic surgeon for a full evaluation.  

Several fairly simple options exist to fix the depressed scar at the tip of the nose, but first I'm assuming that the cyst has been completely removed. If it hasn't been, then it's likely to recur. If it's truly gone and only the scar remains, it may be amenable to fillers such as Bellafill (formerly known as Artefill) which is a permanent injectable filler. If you weren't keen on that, the scar could be managed by scar revision (cutting it out and creating a better, flatter scar) followed by dermabrasion to further conceal the scar. All of this is in-office work under local anesthesia (numbing medicine).All the best,--DCPPearson Facial Plastic Surgery