Rule Decision: Natural Armor

When determining armor bonuses, 5e isn’t always specific about how certain abilities work, as well that some things that would seem to make sense to stack don’t stack.
Natural Armor will stack with Armor in the following way: the higher value of the two will be used, and the other bonus will become a flat +1 bonus (before magic). For example, a Draconic Sorcerer has a base armor class of 13. If the sorcerer chose to wear armor with a value of +4, it would receive an additional +1 to its armor class. If the sorcerer wears leather armor, it would have +3 from its draconic class feature +1 for the leather armor. A Lizardfolk has +3 natural armor. Any armor it wears will stack in a similar manner. This has no effect on things like Bracers of Defense, which stack with the unarmored AC of the sorcerer.