Stealth allows one to walk while being hidden, but to hide, your required to have the hiding skill as well. The amount of steps you can take while stealthing is based upon total skill, and some random factors.
Sometimes you get revealed after just a few steps, and sometimes you can walk away from your opponent. While hidden you can bandage heal and/or gather materials using Fishing, Lumberjacking or Mining.

Please note, in order to start training Stealth you need to have at least 80.0 hiding skill.