I'm working on a mod to change a couple things in Skaal Village, and the magical fog barrier thing over the village is getting in the way. Is there a way that I can hide it or something so it doesn't get in my way while i'm working? Or is there a way that I can temporarily move it and move it back to the same spot later?

What you could do is move it out of the way while you are working and then when you are finally happy with your changes to the village go into TES5EDIT and remove the reference for it from your esp.

How do I remove the reference?

If your planning on releasing mods it's a good idea to check out the TES5EDIT videos about mod cleaning, effectively you are making an edit that you eventually don't really want.

Your fog reference should come up in green if you look in TES5EDIT (you will have to expand the entries to find it), meaning it is an edit to a vanilla reference, you can just select it and right click -> remove.

Edit.. I should point out don't ever delete a vanilla reference, if someone else modifies that reference in another esp you will cause CTD.

I removed the reference but the fog isn't back where it should be. It's still in the same spot that I moved it to.

So you found the reference in your esp (marked green) under worldspace -> (whatever worldspace your looking at)? It sounds like you have removed the wrong reference.

Try "Apply Filter For Cleaning" it should highlight all the changes your mod makes to vanilla references, any Red highlighted entries are bad.