The connection here is the Minkowski space, which can be used to describe both.
Hyperbolic geometry
For example, take hyperbolic 2-space in the hyperboloid model. You'd represent hyperbolic points as points on the hyperboloid, namely as
$$\left\{(x_1,x_2,x_3)^T\;\middle|\;x_1^2-x_2^2-x_3^2=1\right\}$$
This expression $x_1^2-x_2^2-x_3^2$ is the quadratic form which lies at the foundation of the Minkowski space $\mathbb R^{1,2}$. The corresponding bilinear form can be used to compute distances, as
$$d(x,y)=\operatorname{arcosh}\left(x_1y_1-x_2y_2-x_3y_3\right)$$
You can even think about this projectively: you may use a vector which does not lie on the hyperboloid, then use that vector to define a line which will intersect the hyperboloid in a given point, which is the point it specifies. This will work for every vector whose quadratic form is positive.
This idea is also very useful to define lines. A hyperbolic line (i.e. a geodesic) connecting two hyperbolic points is modeled by the intersection between the hyperboloid and a plane spanned by these two points and the origin. You can describe this plane by its normal vector, and you can compute that normal vector as the cross product of two vectors representing the two points. Conversely, you can obtain the intersection between two geodesics by computing the cross product between two normal vectors of such planes, although the quadratic form for that point likely won't be $1$ yet, but any other positive value instead. Therefore, this normal vector of the plane is a reasonable (and homogenous) representation of the line. Its quadratic form will be negative.
Common vocabulary
Now change the vocabulary to use terms which are common for Minkowski spaces. A vector whose quadratic form is positive is said to be time-like. So points of the hyperbolic plane correspond to time-like vectors, with scalar multiples of a vector representing the same point. Likewise a vector whose quadratic form is negative is called space-like. So a line in hyperbolic geometry corresponds to a space-like vector, and all its multiples. In between these two, there are those vectors for which the quadratic form is zero. These correspond to ideal points of your geometry. in a certain sense, an ideal point is as much a line as it is a point.
The set of hyperbolic isometries are those linear transformations of your vector space which preserve the set of ideal points, i.e. which preserve the light cone. These correspond roughly to Lorentz transformations in relativistic vocabulary (with some care because here we identify scalar multiples but there we don't, but the central idea of preserving the light cone remains).
Relativistic geometry
So where do these physically sounding terms come from? Imagining the whole vector space as some kind of space-time-diagram should be fairly simple. The first dimension (with the positive sign) would be time, the other two would be space. A vector would denote an event in this diagram. An event where all spatial coordinates are zero would happen at the same place as the origin, but at some different time. An event with zero time coordinate would happen at the same time but at some other place. The light cone would correspond to a cone of slope $1$, which is the speed of light in our coordinate system. Light travels from the origin along the light cone.
But time and space are relative, so the above choice of coordinate system is only valid for a given inertial system. To convert between inertial systems which meet at the origin, you'd again use a Lorentz transformation, i.e. a transformation which preserves the light cone. Using such a transformation, any event which is a time-like distance away from the origin can be made to happen at the same place but in the past or the future. You'd use an inertial system which travels to that event or came from it. Likewise, any event which is a space-like distance away can be made to happen at the same time, using the right movement to compensate.
Conclusion
So conversions between inertial systems correspond to isometric transformations of the hyperbolic space. And objects in hyperbolic space correspond to (equivalence classes of) events in space-time diagrams.
The above would generalize for higher dimensions, but the part about two points spanning a line would be more complicated to read, since you'd more likely talk about three points spanning a plane. $ $ $ $
You may use the projective model (or Klein model). That is to say, projectivise everythng:
For every line $l$ trough $0$ consider its intersection with the plane $\pi=\{x_1=1\}$. Every point of the hyperboloid is mapped to a point of the unit disc in $\pi$. Since the geodesic of the hyperbolic plane are intersections of the hyperboloid with planes through the origin, they project to usual segments in the disc, connecting two points of the boundary. Let's call them chords.
Now, in a disc it is easy to se that given a chord $r$ and a point $p$ not in $r$ there are infinitely many chords through $p$ that do not intersect $r$.
a complete reference for hyperbolic geometry is the book of Ratcliffe "Foundations of hyperbolic manifolds". There you find the projective model well descripted.
Best Answer
Well the definition of the hyperbolic plane is not just a definition of a set. Indeed the hyperboloid model is diffeomorphic to a Euclidean plane. But not isometric!
So, (one of) the (right) definition is:
takes the component of the hyperboloid with $x>0$ and, as metric, restrict the Minkowski metric (that with signature ++-) (exercice: check that this is indeed positive definite)
As for theorems, item $iii)$ is now a theorem.
I suggest to look the great book by Benedetti and Petronio "Lectures on hyperbolic geometry" http://www.zbmath.org/?q=an:00107544
It is smaller, and perhaps less complete than Ratcliffe, but is very well written and readable. You will find there all the answer to your doubts.