Hi Sam!
This sure is an element that could be included in a land before time story. However, there must be something more around it to make it a story. There have been huge meterior craters in LBT 3 and 10 already.
In one of my land before time stories I made up a place that most likely is a meteor crater, though the origin of the crater is of no real importance to the story:
"The valley looked just like Petrie’s mother had described it. It was not surrounded by mountains but resembled rather a giant hole or a meteoric crater in the surrounding plain that was only interrupted by some wavy hills. Only to the side where the sun would reach his highest stand during the day the crater bordered to high mountains whose steep, rugged tops and cliffs stood out gloomy and menacing against the horizon. The walls of the crater became steeper and steeper the closer they were to the crater’s brink, at which they were nearly perpendicular while they sloped easier and easier the closer you came to the ground of the crater. Altogether the crater’s walls were pretty high.
A meandering, river crossed the crater, flowing closely along one of its sides, and disappeared in a narrow canyon at the one end of the crater that bordered to the mountains. The crater was nearly as big as the whole Great Valley. Its ground was largely covered with dark leafless trees. But there were also a number of steep rocks and cliffs, some of which reached up nearly as high as the crater’s walls and didn’t really seem to fit into the crater. Everywhere there were smaller rocks and some long snowy spurs stretched from the rocky walls of the crater far into its interior. High banks of snow had piled up along the brinks of the valley where the snow had slid down from the steeper rocky walls into the deep until they came to rest at the point where the slopes were no longer steep enough to let the snow slide deeper."