Can someone please explain how hiatuses work on SW?

Because I've been trying to figure it out for weeks and I'm so confused. I don't want to delete my account, leave SW forever. I just want to know how to make it say I'm on hiatus on my profile for a while. That's all.

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XXbc7 · 22-25, M

Is it that big of a a deal though? Most people just assume a hiatus is happening