Several ways to do this, depending upon how you want to do it and how fast
you want to go.
Setup a lathe with a 4 jaw chuck and drill a 3/4" hole or so and then bore
with a boring bar for the final distance. This is a two operation without
having to change tools.
Drill with a drill press or mill to the finished diameter. This may make
for rough surfaces on the inside of the hole as there is no finishing cut.
You can also do a hand ream if you want to have a decent finish on the hole
but that ends up again being a second operation on the part.
Drill with a drill press or the mill to near the final dimension and then
bore with either the lathe or a mill.
With the mill/drillpress operation, a V stop will probably be good enough to
hold the block in place unless you need to have a very accurate location of
the hole with the location in the final operation to be the most accurately
located.
I'll also note that it may be worth while to have an angle cutter on a drill
press to deburr the corners of the hole.
I suspect that the machinist was doing a two operation on that hole to get
it centered nicely in the block.

--
Bob May
Losing weight is easy! If you ever want to lose weight, eat and drink less.
Works every time it is tried!