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Hooks are basically a way to parent a vertex to an object outside of a mesh, curve, surface, or lattice. A hook can be created by either selecting the vertices in edit mode and adding the hook [ctrl+h] which will create a new empty object as the hook, or by selecting an object to serve as the hook then shift+selecting the object containing the vertices, select the vertices in edit mode and add the hook as the object [ctrl+h>>Add, To Selected Object].
Header Options
Name Field The name given to the modifier node.[Scene] (button) Toggles the visibility (effect) of the modifier while rendering.
[Grid] (button) Toggles the visibility (effect) of the modifier in the 3D view.
[Edit] (button) Toggles the visibility (effect) of the modifier while in edit mode in the 3D view. Enabling this button will also produce another circular button to the right which will allow you to edit the vertices in their deformed state (known as crazyspace).
Up/Down (button) Moves the modifier higher or lower in the modifier stack.
Modifier Options
Apply (button) Applies the effect of the modifier to the mesh data itself, removing the modifier.Copy (button) Duplicates the modifier.
Falloff: Creates a falloff effect for the influence of the hooked vertices. 0 is off, small numbers produce a greater falloff so 100 is also off. Most of the effect occurs between 0.001 and 1.0.
Force: The peak value for the influence of the hook. At 0 the hook will not influence the selection, at 1 it will influence the selection fully.
OB: The name of the object that will be used by the modifier to deform the mesh.
Reset (button) Returns the vertices to their home position to allow repositioning of the resting position of the hook.
Recenter (button) Positions the center of the hook influence at the cursor position.
More Resources:
Blender Wiki Page - Hooks
