I got a response to this question from Squarespace via email. Whether it is correct or not is up to your belief system since I don't have a way to verify it. (I am not a search engine)
That's a great question - so to clarify the information a little more which was provided by my colleague if you adjust individual products settings to hidden, it'll still be visible to search engines. With the built-in features, you can hide products from customers but this wouldn't prevent it from being crawled by Google search engines.