You can easily customize leads statuses so they can fit into your workflow.
- To add new lead status you will have to go to Setup -> Leads -> Statuses and click New Lead Status.
- To set up default lead status navigate to Setup->Settings->Leads and choose Default Status.
The default lead status is used to auto-populate the status field when creating a new lead, each time you add a new lead this status will be auto-selected.
The CRM installation comes with 1 lead status, this is the system status for converted leads, the status will have the name Customer, this status is mostly used for reports, for recognition that a specific lead is converted to a customer.