There are a lot of things you could call a hydroid, not all bad. In the hobby, generally they are referring to a small colonies of creatures with a soft brown tube that sticks up and a retractable brown head up to 1/4" in diameter. There is also a free-swimming stage, which is the actual problem, but you can't attack them.
They are very common and as far as I know there's no sure-fire way to eliminate them completely, but it's not hard to keep them under control. There is no reliable natural predator available in the hoddy that I know of. If you have a very large tank, though, you really want carefully QT your live rock before setting it up, for these and other pests.