This feature helps as a customization tool, as mentioning the rules and reasons for the hiring statuses. You can enter the reason for any status except for Applied and interviewing, because those statuses act as a default actions.
Refer to the following steps to manage hiring status:
Navigate to: Dashboard -> Settings -> Hiring Pipelines
A new page will open up showing two different tabs (Hiring Pipelines & Manage status), click on the Manage status tab
A list of status will be shown, you can click on any status (except Applied & Interviewing) and enter the reason (why the selected candidate should have that status), the reason is given for your help and for the help of users that will be using the system after you.
After entering the reason, click on Save button, to add the reason