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When you save something as a draft, the only way to find it again is to click in Drafts in the main content tab. When you make it hidden, it's actually published content that only you can see.
The end result is the same - only you have access to it, but it depends on what your final use is - if you are working on a document with others, you can add them as editors and save it as a draft and they can also see it and work on it.
If you make it hidden, it's a personal document.
But, you could use them interchangeably if you want - it's up to you what works best for you.
Another key difference is that when you save it as a Draft the version number of the Document doesn't increment, whereas if you save it as Hidden each new save will result in a new version (and hence new version number).