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Say you have the following window with 3 buttons, Every control has an attribute named "Visibility" which accepts either of these three values. 1. Visible, 2. Collapsed, 3. Hidden.
If you don't specify anything by default it will take "Visible". As you can see in the following image all 3 buttons are visible and 2 of them don't even have a Visibility set. See listing 1 for clarification.
Figure 1: Visibility="Visible"
Figure 1 is output of the following listing 1. The first and third button don't even have Visibility set, still they are visible, but for the second button we are explicitly specifying the value of Visibility to be "Visible", by doing so we are overriding its value with its default value. It's like assigning 0 to int value.
<Grid>
<Grid.RowDefinitions>
<RowDefinition Height="Auto"/>
<RowDefinition Height="Auto"/>
<RowDefinition Height="Auto"/>
</Grid.RowDefinitions>
<Button x:Name="ButtonSave"
Margin="0 10 0 0"
Height="20"
Width="100"
Content="Save"/>
<Button x:Name="ButtonReset"
Margin="10"
Visibility="Visible"
Height="20"
Width="100"
Content="Reset"
Grid.Row="1"/>
<Button x:Name="ButtonCancel"
Height="20"
Width="100"
Content="Cancel"
Grid.Row="2"/>
</Grid>
Listing 1: Visibility="Visible"
Now let's change the Visibility to "Collapse" for the second button. see line number 8 in the following code snippet.
<Button x:Name="ButtonSave"
Margin="0 10 0 0"
Height="20"
Width="100"
Content="Save"/>
<Button x:Name="ButtonReset"
Margin="10"
Visibility="Collapsed"
Height="20"
Width="100"
Content="Reset"
Grid.Row="1"/>
<Button x:Name="ButtonCancel"
Height="20"
Width="100"
Content="Cancel"
Grid.Row="2"/>
Listing 2: Visibility="Collapsed"
Now look at the output, suddenly the reset button has disappeared, well that's exactly what we wanted to achieve. Reset button is invisible.
Visibility="Collapsed"
Now the question is what would happen if I change the value to "Hidden"? See line number 3 in the following snippet.
<Button x:Name="ButtonReset"
Margin="10"
Visibility="Hidden"
Height="20"
Width="100"
Content="Reset"
Grid.Row="1"/>
Listing 3: Visibility="Hidden"
Now observe the output, we have hidden the Rest button but we left the place vacant.
Visibility="Hidden"
Conclusion
In nutshell, Visibility="Collapsed" means tag is not rendered on the screen itself, hence space is vacant which is filled by its next control on Visual tree.
Where Visibility="Hidden" means control is rendered it occupies the space it just not visible on the screen.
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