You don't say what this is for or what technology you're using, but you need to be aware that you can't trust the hidden field to remain with value="line one
line two", because a hostile user can tamper with it before it gets sent back in the POST. Since you're putting the value in a <textarea> later, you will definitely be subject to, for example, cross site scripting attacks unless you verify and/or sanitize your "multiline_data" field contents before you write it back out.
When writing a value into a hidden field and reading it back, it's usually better to just keep it on the server, as an attribute of the session, or pageflow, or whatever your environment provides to do this kind of thing.