We present a framework for learning hierarchical policies from demonstrations, using sparse natural language annotations to guide the discovery of reusable skills for autonomous decision-making. We formulate a generative model of action sequences in which goals generate sequences of high-level subtask descriptions, and these descriptions generate sequences of low-level actions. We describe how to train this model using primarily unannotated demonstrations by parsing demonstrations into sequences of named high-level sub-tasks, using only a small number of seed annotations to ground language in action. In trained models, natural language commands index a combinatorial library of skills; agents can use these skills to plan by generating high-level instruction sequences tailored to novel goals. We evaluate this approach in the ALFRED household simulation environment, providing natural language annotations for only 10% of demonstrations. It achieves performance comparable state-of-the-art models on ALFRED success rate, outperforming several recent methods with access to ground-truth plans during training and evaluation.