In Employee SuccessUpRaise, one can manage objective visibility/restrict visibility of one or more objectives to other users/teams. However, such invisible objective nodes are displayed by default in hierarchy & explorer view as shown in below images.
In case you do not want these invisible objective nodes to be displayed in hierarchy/explorer view, you can enable this setting to hide these nodes of invisible objectives. 
This setting is disabled by default, meaning, nodes of invisible objectives are displayed on both hierarchy/explorer view.
These nodes of invisible objectives are displayed by default to ensure that if there are any visible objectives downstream - they can still be viewed.
When checked, hierarchy & explorer view will not display any node of objective that is not visible to the logged-in user.
The assumption with this setting turned on is - if an objective is invisible to the logged-in user, then there is no possibility that any downstream objective will be visible to them.
This setting is applicable only on hierarchy & explorer view. On objective details page( within alignment listing & alignment tree sections), invisible objective nodes are displayed regardless of what setting you have saved in advanced OKRs settings.
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