http://hsqldb.org/web/hsqlFAQ.html#NEWDB
How to Create a new database:
A new database is created automatically if it does not yet exist. Just
connect to the not-yet-existing database using the
jdbc:hsqldb:file:«database-path» URL (should replace the last part
with the path you want) with the user 'sa' (or any name) and a
password (can be an empty string). You will use this name and password
to connect again.
Q: Will we be able to see the contents of the db via any tool?
No. SQL Server tools aren't going to work with Oracle, mySQL tools aren't going to work with SQL Server ... and the primary goal of HSQLDB it to use it with JDBC etc, i.e. programmatic connections.
Q: How to know what is the driver name they have supplied?
From the FAQs:
HSQLDB comes with documentation, example program source code that can
help programers who are new to JDBC programming.
Basic sample programs are in the /src/org/hsqldb/sample folder.
Source code of test programs are useful examples of how to use
different features of JDBC and SQL. Check the sources in the
/src/org/hsqldb/test folder.
SQL test scripts are in the /runtest folder and offer extensive
examples of SQL statements.
HSQLDB has a standard JDBC interface. HSQLDB specific JDBC
documentation is included in the /doc/src folder.
The driver file is "hsqldb.jar".