We are given that:
\[
\sin^{-1} x + \cos^{-1} y = 0.
\]
This implies that:
\[
\cos^{-1} y = -\sin^{-1} x.
\]
Now, recall that:
\[
\cos^{-1} y = \sin^{-1} (\sqrt{1 - y^2}),
\]
and since \( \cos^{-1} y \) and \( \sin^{-1} x \) are inverses of each other, we conclude that \( x = \sqrt{1 - y^2} \).
Step 1: Now, we compute \( x^2 + y^2 \):
\[
x^2 = 1 - y^2 \quad \Rightarrow \quad x^2 + y^2 = (1 - y^2) + y^2 = 1.
\]
Thus, the value of \( x^2 + y^2 \) is \( 1 \).
Therefore, the correct answer is option (C).