Underwater target localization is the most crucial part of the underwater wireless sensor network (UWSN). Due to limited communication range and energy constraints in underwater scenarios, only a subset of sensors can be selected to localize. This paper investigates the sensor selection schemes for hybrid angle-of-arrival (AOA) and time-of-arrival (TOA) localization in the underwater scenario. We first develop the Cramér-Rao lower bound (CRLB) for the hybrid AOA-TOA localization with correlated measurement noise model with Gaussian priors, and a Boolean vector is introduced to denote the selected sensors for hybrid measurement. Secondly, the sensor selection schemes are formulated as an optimization problem, and the optimality criterion is to minimize the trace of CRLB. The original nonconvex problem has been modified to the semidefinite problem program (SDP) by convex relaxation, and then, a randomization algorithm is chosen to advance the result of the SDP method. Finally, simulations verify that the proposed algorithm approaches the exhaustive search algorithm, and the effect of correlated measurement noise on the estimation performance in the hybrid localization system is proved.