Question

Why can Aurora Veil only be used when its hailing?

Comments

There is actually a way you can trigger the effect of Aurora Veil outside of hail, which is by using Gmax-Resonance with Gmax Lapras, makes it even more tanky.

Answer 1

The most likely explanation lies in the name itself 'aurora'. Auroras can only be seen near the poles and those places are usually snowing. Since snow is usually dropping in those places, at least before the climate change thing, it makes sense that aurora veil can only be used when its snowing. That is if you're looking for a logical explanation

If you want a game related explanation then it is very simple, if it can be used outside of hail, then it would be broken af once you consider its effects

Comments

So you can set up Light Screen or Reflect like it looks normally but it does nothing or it totally fails

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You can, but it won't do anything, i.e. the effects don't stack.

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That's good to know

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I'm gonna put a summary of my answer

TLDR: Aurora veil uses the auroras as a veil to reduce damage. Auroras can only be found near the poles. The poles are usually snowing, before climate change anyway, so it needs the conditions in order to be used. For a game perspective explanation, this move would be broken AF

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Aurora Veil is already broken that the move was banned from Gen 8 NU.