Maybe a peephole for a firebox?
Like on a steam locomotive, or anything that burns wood, coal, etc.. - even a commerical oil-burning furnace, I suppose.
I think the the hole is too large to be a security peephole.
BTW: Definitely not a choo-choo train guy here.
I'm almost positive the device I'm thinking of is NOT called a "firebox peephole", but I'll let someone else chime in with the Rail-Roaders' official jargon.
Oh, and my guess could be way off.