A HUD is a screen-space UI layer that stays fixed to the viewport no matter where the in-game camera looks. Health top-left, minimap top-right, ability slots bottom-center — the placement conventions are strong enough that players can parse an unfamiliar game's HUD in seconds.
A good HUD stays quiet until it matters: dim and small by default, then pulling attention with color and scale once health drops or a cooldown finishes. Anchoring it to the screen edges keeps the center of the view clear for the actual gameplay — hit points, enemy positions.
Cramming every stat onto the HUD makes none of it readable. Lower-priority information — quest log, inventory — belongs on a separate screen; the HUD keeps only what's needed to survive the next few seconds.
When to use
Any real-time gameplay screen with movement or combat. Static menus and settings screens don’t need HUD conventions.