Are you on the Hotmail Inbox page? Is it a folder? if so then hover your cursor on 'Folders' and left click on the spikey circle (cogwheel) next to 'Folders' and then leftclick on 'manage folders' on the menu that pops up and the list of your folders will appear on the righthand side. There will be a little square box next to the folders that you can alter. Select (Put a green tick in the box) the folder that you want to do something with and then you can delete a folder by clicking on 'Delete' that is on the menu just above the list of folders (New, Rename, Delete)
If it is anything else then you will have to have a look at your 'Options' (top right corner of page under your name)and click on 'Options' and then click on 'More Options' as there are so many ways to configure privacy and what is displayed it is impossible to guess what you mean without more specific details.