The important thing to know is the use, "hence the ..."
Hence means "therefore." So, this is a common usage:
I could say:
1) It is Halloween. Therefore, I am wearing a costume. OR
2) It is Halloween. Hence, I am wearing a costume. OR
3) It is Halloween. Hence, the costume.
#3 is most often used in response to a question: Joe: "Why are you wearing a mask?" Mary: " It is Halloween. Hence, the costume."
Or, even more commonly: Joe: "Why are you wearing a mask?" Mary: " It is Halloween." Joe: "Ah! Hence, the costume! (in other words, "I now understand that you are wearing a costume because it is Halloween"