Orders move through system statuses that every store shares. On top of those you can add custom statuses — say "Awaiting engraving" or "QC hold" — each with a name and a color so they're easy to scan in the orders list.
Rules
System statuses can't be edited or deleted. Custom statuses are capped per store, names must be unique, and deleting one can't be undone — orders currently in that status keep working, they just lose the label.