Housing,
shelter, escape hatches, temperature control, foraging for
roots... Rabbits are prey, so burrowing to hide and stay safe while they sleep, and burrowing from one location to another, provides a secret way to escape from predators. They also find yummy roots to nibble. They're also critters with a high metabolism, and especially in summer, can overheat easily. Burrowing into the soil gives them a reprieve from the heat.