There is a way to encrypt the mnemonic code at the time of creating the wallet, if it is called BIP39 encryption consists of adding a password on top of your mnemonic, as if it were an additional word, a second authentication factor, I use this method and do not need worry about hiding my mnemonic, because even if someone has access, it's encrypted, it works like encrypting a paperwallet with BIP38.
BIP39 does not define any encryption. The additional word (passphrase) is
not used to encrypt your mnemonic seed.
The additional word is used to derive a different (pseudorandom) seed (which is then used to derive HD wallets) from your mnemonic seed.
If someone gets access to your mnemonic seed, he will see all words. Nothing is encrypted.
But this mnemonic seed will generate a different seed (which is then used to generate HD wallet) than the same mnemonic seed with the additional word.
This is two-factor-authentication because you need to (1) have something (the mnemonic seed) and (2) know something (the additional word (=passphrase)).
This way you can add plausible deniability to your wallet. Use the mnemonic seed without a passphrase for a low-value wallet and use one with a passphrase for your 'big' holdings.
You will be able to disclose your seed/wallet to authorities/gangster/etc. without them being able to know you have a second (hidden) wallet tied to that seed.
You can read more about the additional word (passphrase) usage of BIP39 on github:
https://github.com/bitcoin/bips/blob/master/bip-0039.mediawiki#from-mnemonic-to-seed