Order return status can be used to manage customer returns.  This Return status list page can be found under 

Log in to your admin panel and go to System> Localization> Return > Return status. Obviously, all Return statuses are already on the list, so no need to add more!

Let’s take a tour by exploring the setup of Return status. 

These Return statuses can be used to manage the customer order status. Each Return status can be individually disabled, by editing them. The Return status can be deleted as well. 

Note:  The only issue with the deletion of a Return status is that the Return status information will be deleted with it.

You can edit the Return status by clicking the edit pencil button. 

Checking an individual box in the first column will select the Return status within the same row. Once selected, you can choose to  "delete" the Return status on the top left corner and click the + button to add new. 

1. Enter the Return status name
2. Click the save button

Then customer Return list will be available on Sales --> Return --->History.  you can edit to will change the Return history. ( Return status name will show the tab )

The result of the customer Return status update can be seen in the screenshot below

Congrats!!! Now your order Return status is enabled to the public, Which will help your customers make an informed decision with their purchase.