But z is not a constant, according to the equation in your first post.
A more sophisticated approach than that of the other responder is to look at a variety of cross-sections. The graph of z = x^2 - y^2 is a three-dimensional surface. The intersection of the surface with the x-z plane (where y = 0) is a parabola, and so is the intersection of the surface with the y-z plane (where x = 0).
Look at the intersections with the planes y = +/-1, +/-2 and so on, as well as the planes x = +/-1, +/-2. These might help you visualize what the surface looks like.
I wouldn't. I would set y = 0. Draw that like you would in high school z = x^2, looks like a parabola in the x going up /wrt z. Do the same for y = 0, except you get a parabola going down in the yz plane. I would say you can stop there. Draw one of the parabolas in xyz system. Suppose you choose z = -y^2. Then you get a parabola that is going down around the z axis. Now attach one of your z=x^2 parabolas to some points that lie on the z = -y^2 parabola. You can generally get a frame for a 3d graph like this. If you are really careful, the graph might look like a horses saddle.