VHD/VHDX is the virtual hard disk file type used by Microsoft’s Hyper-V hypervisor. This restore type restores a VHD/X for each volume that you select. Restoring an Image backup as a virtual hard drive allows you to do anything you would want to with that virtual hard drive, be it import that file into Hyper-V to manually create a virtual machine or mount the virtual hard drive to an existing machine to put files off of it directly.
Whether or not the files are restored as (.vhd) or (.vhdx) is determined, by default, by the operating system of the source machine. The exception to this rule are cases in which the backup software detects the backup destination is incompatible with one of those formats (e.g. if the backup destination is formatted with 4KB sectors, the image reverts to the (.vhdx) format).
All virtual hard disks are recovered as dynamic disks.
Virtual hard disks take the following naming convention by default: Recovery_{machine_name}_{volume or volume group label}
Example: Recovery_LT-R9RLN75_Boot
You can restore to another system if the OS version is different; however, this only works if the change represents an upgrade. For instance, you can back up Windows 7 and restore on Windows 8 but not vise-versa.
You can attach the Hyper-V disks (VHD files) that are restored to an existing VM.
See Restoring Physical Imaging Rapid Recovery to VHD/X Files.