This paper is the second in a series of four papers aiming to describe the (almost integral) Chow ring of
M
¯
3
\overline {\mathcal {M}}_3
, the moduli stack of stable curves of genus
3
3
. In this paper, we introduce the moduli stack
H
~
g
r
\widetilde {\mathcal {H}}_g^r
of hyperelliptic
A
r
A_r
-stable curves and generalize the theory of hyperelliptic stable curves to hyperelliptic
A
r
A_r
-stable curves. In particular, we prove that
H
~
g
r
\widetilde {\mathcal {H}}_g^r
is a smooth algebraic stack that can be described using cyclic covers of twisted curves of genus
0
0
and it embeds in
M
~
g
r
\widetilde {\mathcal M}_g^r
(the moduli stack of
A
r
A_r
-stable curves) as the closure of the moduli stack of smooth hyperelliptic curves.