How to tile over cinder block holes?
Instead of tile, consider 9/16"-ish thin brick veneer, which looks good in combination with concrete block.  Something like this:



You could put a wire lath over the blocks, and then just use mortar to adhere the brick to the lath/blocks.



Another option would to be run a 1x8 cedar "trim" board to cover the horizontal concrete blocks.  This would look really good once you clean up the dogears above.  For this you could use tapcons, to attach the board to the block.  Even better might be to run a pressure treated "sill" on top of the block.   That would add 1.5" to the trim board though so you then could nail a 1x10 to the pressure treated sill.  Ideally the sill would be sloped away from the dog ears, so that it would shed water away from them.