The intrinsic magnetic coercivity (Hci) of Nd-Fe-B-based permanent magnet material is profoundly affected by hydrogen absorbed during the hydrogen decrepitation (HD) process for producing anisotropic powders from bulk anisotropic hot-deformed MAGNEQUENCH (MQ) magnets. Hydrogen (H) content and x-ray diffraction measurements clarify the effects of H and desorption temperature (Td) on the intrinsic magnetic anisotropy (IMA) of the Nd2Fe14B-type phase and the nature of the intergranular phases, both of which are crucial for high Hci. The Nd-rich intergranular phase disproportionates during HD, initially forming a microcrystalline Nd-hydride phase, possibly Nd2H5. For Td≤220 °C, H remains in the Nd2Fe14B-type phase, severely degrading the IMA, which causes a low Hci. For 220 °C≤Td≤250 °C, enough H desorbs from the Nd2Fe14B-type phase and the IMA recovers its large prehydrided value, and the microstructure supports a high Hci≤10 kOe in spite of the H disproportionated intergranular phase. Only for Td≳250 °C is Hci degraded by the microstructure, corresponding to further H desorption and the microcrystalline Nd-hydride phase becoming well-crystallized NdH2. The NdH2 phase decomposes with continued H desorption and at Td≳580 °C recombines to re-form the Nd-rich intergranular phase of prehydrided MQ material. H is completely desorbed above 580 °C and Hci≳11 kOe, nearly that of the prehydrided MQ magnets.