You can do both. It depends how you do the backup ..
Hope that helps.
So, can I install on Hyper-V and a Virtual Machine with the one license?
Not sure on this, I will probably need to check with someone.
So you mean the VM is running on the same host, right? And what license do you have?
I have the 11609-M2959 - SYSTEM RECOVERY SERVER ED WIN 1 SERVER ONPREMISE STANDARD
PERPETUAL LICENSE COMP UPG CORPORATE
Should it just be on the virtual machine?
So for this scenario, it looks like you need 2 licenses as you are protecting 2 different machines (host and VM).
In case you were not aware, we also have the Virtual Edition; this is 1 license that can be installed on the Hyper-V host and on an unlimited number of VMs running on that host. However, if you are only interested in 1 VM, it probably is not cost effective to go down this route - I just wanted to make you aware that this is available.