With my first baby, I did much of my hospital labor in a tub, so by the time he was born I was completely naked. With the second it was much the same, except they put a gown on me before I started pushing. It was just me, my husband, the midwife and a nurse or two. You get to a point where you just don't care what you're wearing. Plus, there are lots of, um, fluids going everywhere, so you don't want to wear your own nice clothes. As far as covering up your breasts, when you start breastfeeding the nurses will want to get a good look at the baby's latch, and so will be looking full on at them! Basically, while you give birth, you lose all sense of modesty. Don't worry, though, the nurses and doctors have seen it all before. Are you planning on having a lot of people in the room? If so, the hospital gown would probably be best. You might want to take a robe and some socks in case they have you walking around during the labor. Then later, after the baby's born, put on whatever makes you feel pretty, fix your hair, even put on makeup if you want, and greet your visitors.