If I saw that the hiring range was completely inside the salary range such as:
Hiring range: --7-9---
Salary Range: 5------12
Then I would understand it as for this specific job they will start you in the range of 7 to 9 depending on the new hire's experience level. But positions in the organization with that job title can be paid a rate of 5 to 12. That means that you know the ceiling for that job title. Which means that annual increases can get you closer to the ceiling, but you will need a promotion to another title to get above the ceiling.
The other thing it tells me is that if a person already with the employer looking for a transfer, they can determine if they will see a change in pay if they make the transfer.
If the salary range is as stated in the comment:
Hiring range $5 - $10 Salary range $7 - $12
That is confusing. It almost seems like they are suggesting two different titles depending on the level of experience. If you have zero experience you will be paid as a low-level-title in the range of $5 to $7, but if you have more experience you will be a mid-level-title in the range of $7 to $10.
In this case I would ask the hiring manger/recruiter, or similar POC. This is important to do if the rate of pay will be the deciding factor, and you aren't interested if you will only be considered for the low end of the range.