I am having difficulty finding parametric equations of the curve of intersection of $z = x^2 - y^2$ and cylinder $x^2 + y^2 = 1$
I am aware that the first equation represents a hyperboloid, and the second equation represents a cylinder. I think for the second one I can just do $x = cos(t)$ and $y = sin(t)$. Not sure about the other one.

As you point out, the second equation implies that $x = \cos(t)$ and $y = \sin(t)$. Substituting these into the first equation yields $$ z = x^2 - y^2 = \cos^2(t) - \sin^2(t) \, . $$ Thus the curve is parametrized by $$ (x(t), y(t), z(t)) = (\cos(t), \sin(t), \cos^2(t) - \sin^2(t)) = (\cos(t), \sin(t), \cos(2t)) \, . $$
Here's a SageMathCell illustrating the surfaces and curve of intersection, which produces the following plot.
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