The hole at Caterham on the Hill was about 6ft (1.8m) wide and was about 20ft (6m) deep before mud fell in, resident Kimmy Humberstone said.
She said the hole opened up in the green on Tuesday and the ground nearby had also sunk.
Tandridge Council said the hole was fenced off and insists the site is now stable.
Ms Humberstone said it was an area where people walked their dogs and added: "The thought that it could just open up like this, out of nowhere, is quite shocking.
"Obviously we have got the ground around it. It's not just that area, it is undulating, it does appear to be sunken.
"Potentially any part of this area now could be dangerous."
A statement from Tandridge Council said: "As soon as we were told about the sinkhole our building control team visited the site and fenced off the area.
"Further investigations are now taking place to find out the exact cause as there are some drainage pipes underneath. The rest of the site is stable."
A sink hole has opened up in a Surrey village after heavy rain raising fears that more ground could give way.