How to Update the Values in the Status Field
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Here's how to do this in Service Cloud:
Go into Setup by clicking on the Cog Icon. Once in there click on the Object Manager tab to the left hand side:
Once you have selected Case, you will be able to within the Case Object, and have lots of options on the left hand menu. Here select Fields and Relationships:
Now scroll down to find the section labeled Status:
Be sure to select the correct one (there are two of them). The one you should click on is just Status. Once you've done that, you will be taken into the section where you can add, edit, and remove certain Status types.
It is as simple as that. Now you can change up the generic Open, Pending, Resolved, and Close Statuses to something a little more in tune with your workflows.