Status is a functionality used in a couple of modules, including equipment.
Status for equipment is in the menu SETTINGS > STATUS.
Create a new status
To create a new user type you need to fill out the following:
Status: Name of the status
Colour: The colour frames the letter (to help create an overview of the different types of status)
Edit a status
Editing a status happens on the same menu. Just click on the pencil or directly on the title to enter edit mode.
To assign the status to a piece of equipment, you just need to edit the equipment object as explained here.