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The Hoard has currently two effects.
As first there is the quality level. If you add treasures to the hoard, you will see a chance, if your quality level is increasing. So you should use the best treasure units there to get close or in best case to 100%. The quality level has influence on your rewards on the whole run on this delve. It will increase the multiplier on glory, ingots etc. But most important are the additional chest level you can get. The maximum quality level is 10. If you have it on the maximum and you will beat the boss level, then you have 4 additional chestlevels save already. So if you do a run, you always get the level 1 chest on the first room and at least the level 4 chest on the boss room. This means with the highest quality level you have a level 5 chest already. So I would recommend, to try to max the quality level to 10 as soon as possible.
The 2nd effect of the hoard is the hoardlevel itself. The level will increase your attributes of your troops on this delve. I would recommend to max it to level 100 first, because till this level you will receive renown for leveling it up.
The shards have just influence on the underworld. This means, that you just can get the factiontroops and the treasure units to increase your hoard.
I've sadly noticed already, that most players don't play the underworld, because it's way to complicated or time consuming. It's maybe true, but I can assure you, that you will get by far the most and biggest rewards in the underworld.
If you have more questions, just ask please. I love the underworld :D
This chance to increase the quality is presumably the 100% you have that reverts to 0 - it is the chance you have of increasing the quality of the hoard for the treasures you have selected this time. Once you spend the gold and add them it reverts to 0 because you now have no treasures pending addition to the hoard, so until you select more you want to add you don't have a chance of raising it again.
Generally I find it best to add the first three low XP treasures to a new hoard first - this will raise the quality without raising the level too rapidly - and the level of each hoard determines how much each new treasure costs to add, so it can get expensive if you level it up too much before capping the quality.
Once the quality is up to about 7 or 8 then I switch to the last three treasures to raise the quality to the cap while pushing the level up to 100 (which as mentioned by the previous poster is the cap after which you stop getting new renown for the faction). After that it is purely just if you wanted even higher stats during delves for that faction you could spend ever more gold and treasures pushing it higher (using the highest XP treasures only unless you have near infinite amounts of gold to burn).
Do you think it's better to focus on a single faction and try to get the hoard level maxed first or spread them out and keep them even? Given the hours I work, I don't honestly have much time to dedicate to faction events but I still jump on for a few minutes every day.
Once one is up to 10 you could move on to spending your gold/treasure to level up a second factions hoard and once that is complete you then can swap between them for variety without reducing the rewards you get.
Raising the hoard level to 100 is probably less important, as while it should let you be successful at higher levels with the stat bonuses, if you aren't playing the faction events then you don't really need to worry about that much (because as far as am I aware raising the level of a faction doesn't affect the rewards you get apart from the one off bonus for permanently making that faction harder). Whether you want to leave each faction at level 20 for the fastest clearance, or raise it to something a bit challenging for your team is down to personal taste.
Raising the hoard level to 100 for all the factions is one of the easy ways to get a fair chunk of renown, but apart from getting the odd (mostly common) ingot each day you login, and an irrelevantly small amount of gold per day, until there are a few more factions that won't be enough to get even the +1 health outside of delves, which currently needs more like level 80 completed on each faction in all three categories (although it will get easier as more factions get added), so for now probably). When there are a lot more factions no doubt this will change and even moderate progress in each faction and levelling up the hoard for each will be a lot more worthwhile.
The flip side is for players that mostly play the faction events - there you have no choice but keep advancing levels each time, so levelling up the hoard for the stat bonuses tends to be much more important so you can progress through however many delves to get the orbs/vault keys without getting stuck or forced to resort to overly defensive tactics to make it through, slowing things down.