Stone Fruits are not edible, but can be Mined to give 65% chance of a Ripe Stone Fruit, 34% chance of a Rock, or 1% chance of a Sprouting Stone Fruit. Stone Fruit can also be worked by Weather Pain, Slurtle Slime, or Gunpowder. Slurtle Slime can mine any number of single Stone Fruits, while Gunpowder can mine (multiple) stacks of 10 Stone Fruits. This means you can simply split a stack of 40 stone fruits into 4 stacks of 10 stone fruits each, then explode the stacks with a single gunpowder to open all of the stone fruits at once with only a single gunpowder. You can do this with any number of stone fruit and the stacks don't have to be 10, they can be any number underneath 10 (for example 7).
Ripe Stone Fruits have a chance to be obtain by mining Stone Fruits. Unlike their raw counterparts, they can be eaten, restoring 12.5 Hunger and 1 Health. They can be Cooked over Fire to obtain Cooked Stone Fruits which restore slightly more Health. Both versions of Stone Fruit can be used in the Crock Pot as a Vegetable. Ripe Stone Fruits can be used to substitute raw Cactus Flesh in the recipe for Guacamole.
While their appearance resembles those of a real-life avocado, their name plays off the literal meaning of the term "stone fruit", which refers to a broad category of fleshy fruits containing a single hardened pit known as a drupe; examples include cherries, peaches, and the coconut.
This is misleading as avocados themselves aren't drupes, they are in fact, a single-seeded berry.
Webber and WX-78 mention needing to "wait for it to ripen"; however, time does not affect the Stone Fruit in any way.