Customize Step Execution Status
Zephyr Squad comes with 5 default test execution statuses which can be modified or more can be added as needed.
As an Administrator, open the "Administration" section, select Add-ons and the Zephyr Squad section will be below the "Atlassian Marketplace" section. Click the Customize Step Status link on the left and the following screen is displayed, which allows you to edit the existing statuses and create new ones. Note that you can not delete the default statuses, only edit them. You can delete any statuses that were added on top of the default ones.
See Also
Customize Global Level Custom Fields