Layers Show/Hide not hiding children with showing parent

I created a new layer and assigned it to a child object of a Canvas object. The Canvas object has a different layer that is set to 'show'. When I set the new layer to 'hide' my child object is still visible. If I hide the Canvas object's layer then the child will hide.

Why can I not hide objects by toggling their layer? Why must I hide the layer that their parent is in?