What is “hidden” ?

The model can use many possible state sequences to generate any given observation sequence. We don't know which one it used, and we don't care!

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Now it's a hidden Markov model.
This word hidden means something very special and very simple, that all it is is this.
If the observation sequence has got Mohr items in it than there are states, then there is more than one way that that model could have generated that sequence.
Another where there's more than one alignment between five things and three things.
There's one alignment, and you can think of lots of other alignments because we don't know really, which one the model used.
We say it's hidden.

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