All paprika is made from the ground skins and flesh of dried red peppers. It’s the variety of red peppers used that separates sweet, hot, and smoked paprika.
Made with extra-spicy red peppers, hot paprika is, of course, hot. Like cayenne or other ground chiles, a little goes a long way with this stuff. Use it in place of sweet paprika when you want to spice up your dish or if you don’t happen to have cayenne or red pepper flakes on hand.