Type ctrl-v, ctrl-h.
ctrl-v says 'insert the next control character literally'. The cursor should change to a highlighted caret.
ctrl-h is the backspace character. It looks like in ed, typing ctrl-h without ctrl-v also inserts a literal backspace, but in other contexts, crtl-h may have some other meaning, and you will need to press ctrl-v first.
EDIT: With the above steps, od -cb gave me:
$ od -cb file
0000000 h e l l o \b \n
150 145 154 154 157 010 012
0000007
which looks correct.
When I tried it again with ctrl-v, Backspace (as opposed to ctrl-h), it instead gave
$ od -cb file
0000000 h e l l o 177 \n
150 145 154 154 157 177 012
0000007
177 is the ascii octal code for DEL, not Backspace. This may vary by system, though.