There is no error. Only a warning about "setting GRUB_TIMEOUT to a non-zero value when GRUB_HIDDEN_TIMEOUT is set". Just don't do that. Edit /etc/default/grub (here with GEdit):
$ gksu gedit /etc/default/grub

Read https://www.gnu.org/software/grub/manual/html_node/Simple-configuration.html#Simple-configuration to understand what variables you can define and how. Those are Shell-like variables: easy.

Once you are done, save and quit the text editor. Then, execute:
$ sudo update-grub

You can first copy /etc/default/grub somewhere in your home directory if you are afraid to screw up everything.

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