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OP, are you talking about the hood insulation attached to the underside of the hood? That is generally put there for sound dampening. Most luxury cars have it to keep things quieter. Asbestos has been used at times as a fire retardant as well as reducing the amount of heat on the hood. I have a Toyota Corolla and it never came with underhood insulation. The paint on the hood is fine. I don't see any reason to remove it. It won't hurt either, but I would just leave it as is.
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Some cause happiness wherever they go: others whenever they go. -Oscar Wilde
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