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Whether or not grass will fill in bare spots itself depends on the type of grass you have. For example, grass with rhizomes (e.g., Bermuda grass) and stolons (e.g., Saint Augustine grass) will naturally fill in bald spots as it spreads laterally. However, clump-forming grasses will not spread. 

Common options include Kentucky bluegrass, fescue, and ryegrass. Choose based on climate and lawn usage.

While hydroseeding is designed for bare soil, it is possible to apply it over an existing lawn with certain adjustments. For the new seed to be successful, it needs good seed-to-soil contact to germinate and take root. Without proper preparation, most of the new seed will fail to establish and will die. To hydroseed over existing grass, first mow the lawn as low as possible, then loosen and clear any exposed soil. It is also recommended to use a finer mulch mixture in the hydroseed spray, which helps the seeds penetrate the existing turf and reach the soil without suffocating the established grass.

Yes, but the best approach is to apply fertilizer well before you actually sprinkle the seeds. Apply fertilizer with an NPK ratio somewhere around 10-10-20, or 10-10-10, depending on soil test results and the type of grass you're planting, about six to eight weeks before planting grass seed. This mix added to loosened soil will give the grass seed its best chance of getting off to a solid start.