The very utilitarian verb do in English is used, among other things, as a placeholder for nearly any other concept you might put it to. In a way it's the Swiss Army Knife of verbs. It literally means to act in whatever sense is implied or previously stated.
When the sense is stated, it works like this:
A. I think I'll eat this sandwich.
B. Do it.
A. Would you build a house on a mountaintop?
B. I'd do it if I had the money.
George Bernard Shaw famously wrote:
"He who can, does; he who cannot, teaches."
The sense there is obvious.
When the reference is not stated, you need to rely on context, and it is almost always a euphemism there. There's a cliché you'll hear a lot:
We don't do windows.
Meaning, literally, that we don't wash windows, but what it really means metaphorically when windows are not the subject is that the speaker is limiting the scope of what "we" may or may not consider appropriate work for "us".
See references to Do Me Feminism, which is also called Sex Positive Feminism and can be illuminated as "Fuck me" feminism. "Fuck me" is coarse and obscene so the euphemism is called on.
Underworld dramas and cop shows are full of characters saying they are going to "do" someone, meaning they are going to kill them. Again, the word kill is too strong (and incriminating) so the euphemism is preferred.
It is this latter, euphemistic sense that seems to be where your line of dialogue is headed. Several users have proposed that do there is a stand-in for break, and that seems perfectly reasonable to me. It is used euphemistically so as to avoid mentioning the specific type of violence intended while making sure that the message is conveyed that there will be some kind of violence.
