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There is a slim chance you can. At 200 yards with a max magnification of 20x, your target will appear around 10 yards away, so if you can see a 223 hole on paper around 30-40 feet away without magnification then yes. Realistically a spotting scope would be better suited for this purpose, any reactive or "Shoot-N-See" targets would also be beneficial to make out that small of a hole.
I am a professional precision rifle instructor and pro shooter in one capacity or another for 30+ years. I own this scope and similar and shoot them regularly on paper at 200 yards. Assuming you adjust your parallax to bring the target into clear focus, you should have no trouble if the light is coming from your side of the target and illuminating it. If you are looking into the sun or the face of the target is shadowed, it will be much more difficult. When the sun is behind me and mirage is not bad, I have no issues resolving individual holes at 20x. Magnification and scaled visual distance are less important than the resolution ability of the glass and design.