Steam shows every game you’ve ever purchased or received as a gift in its library. It remembers some free games you’ve installed, too. But you can hide a game from your library—or even permanently delete it from your account.
The Difference Between Hiding and Removing Games
Hiding is reversible. When you hide a Steam game, it’s hidden from the standard library views. Someone can still see the game with a few clicks, and you can unhide the game in the future. You can even play a hidden game. It’s just a way of sweeping a game under the rug for the moment.
Removing is permanent. When you remove a game from your Steam account, it’s permanently deleted. The game won’t appear in your library. You previously had to contact Steam customer support and ask for this, but there’s now a standard way you can delete games in a few clicks. Beware: To play the game again in the future, you’ll have to repurchase it.
How to Hide a Steam Game
To hide a Steam game, locate it in your library, right-click it, and then click “Set Categories.”
Check the “Hide this game in my library” option and then click “OK.”
How to Find or Unhide a Hidden Steam Game
To view your hidden Steam games, click the category box at the right side of the search box in your game library and then select “Hidden.”
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Source: How-To Geek