Quantum states cohere and interfere. Atoms arranged imperfectly in a solid rarely display these properties. Here we demonstrate an exception in a disordered quantum magnet that divides itself into nearly isolated subsystems. We probe these coherent spin clusters by driving the system nonlinearly and measuring the resulting hole in the linear spectral response. The Fano shape of the hole encodes the incoherent lifetime as well as coherent mixing of the localized excitations. For the (sing magnet LiHo0.045Y0.955F4, the quality factor Q for spectral holes can be as high as 100,000. We tune the dynamics by sweeping the Fano mixing parameter q through zero via the ac pump amplitude as well as a dc transverse field. The zero crossing of q is associated with a dissipationless response at the drive frequency. Identifying localized two-level systems in a dense and disordered magnet advances the search for qubit platforms emerging from strongly interacting, many-body systems.