In-game, deck armor is terrible since it takes away from hangar space but only works against surface fire (!?). It adds HP, but the effect is negligible in reality.
In reality, there were 3 different ways of armoring a carrier: deck armor (which didn't detract at all from carrying capacity, other than the opportunity cost due to the ship being more expensive), reinforced hangars (which significantly-increased a ship's tactical survivability, aka HP, but also reduced the size of hangars on account of the armor around them), and belt armor (which is what deck armor actually ends up materializing as). Belt armor was actually on most carriers, with the battlecruiser conversions coming out with 4-to-6 inches of belt armor (the British conversions were made from stupidly-light BCs compared to the later US and Japanese ones).
Realistic deck armor shouldn't be some stacking side-armor module; that should be a case of straight-up belt armor akin to cruisers (in fact, carriers should share cruiser armor options, plus BB/BC armor for carrier conversions). The current deck armor module should really be replaced by a reinforced hangar module with reduced deck space but bonus HP, while deck armor should be one of two options for the main hangar (since carriers always need at least a primary hangar, let that one determine armored or unarmored). Deck armor should add reliability and HP, but only a little armor (deck armor is only effective against plunging fire, and not close-ranged gunfire). Ideally deck armor would also have resistance to CAS damage (which should have extra effectiveness against unarmored carriers).
The historic answer to the question of which was best ended up being deck armor but open hangars (as in, not reinforced) and limited belt armor (no one wanted none just in case a destroyer or cruiser got close, but it only really ended up at cruiser-grades in most circumstances other than the Shinano conversion with a full-on Yamato armor belt). The British were moving away from reinforced hangars towards open hangars by 1945, while the US actually abandoned the unarmored deck for the Midway-class, showing that both the world's premier navies had basically the same idea there. Deck armor was also particularly-valuable against kamikazes, as one of the more comical reports of the HMS Indefatigable showed (hence the quote "When a kamikaze hits a US carrier its 6 months in repair at Pearl Harbor; when a kamikaze hits a Limey carrier its just a case of 'sweepers, man your brooms'").