My brother in CA was an abalone diver many years back. He gave me many red abalone shells. Most were eaten up by the borers. I still have a stack out in the shop. Belt buckles are really nice from this stuff.
Fill the holes with either clear epoxy, or better, the inlace filling compound from TKS. You could use the gold, silver, or blue to get a great look. When the resin is polished flush with the surface, the abalone should look exquisite.
Abalone dust is bad to breath for as lot of reasons, but contrary to what I was taught as a younger jeweler, it is not especially toxic. It can make you nauseous, and give you a headache. Wearing a good respirator, and removing all the dust when you are done will solve most problems.