The application status is a way for you to track each application you receive as the talent(s) in question go through your internal screening processes related to talent acquisition for the role.
Application statuses are based on your company’s internal processes and can be set to reflect the steps your team takes to ascertain whether a talent is a good fit for the role or not.
It allows you to have visibility on which applications are at what stages of your process and keep a track of it.