Is it possible to change how the status is displayed?

I want to know if it is possible to change how the status is displayed.

For example, I have a water sensor and the status that is displayed either on or off. Can I display something like: “Water in the basement” or “Basement is dry”?

Check out the “Template Sensor”:

Exactly what I needed. Thank you.

Another way to go for this with sensors is setting the device class. The available classes are listed here:

An example water sensor I have, I set the device class to ‘moisture’ and it will now automatically show as ‘wet’ or ‘dry’.

You can set it up in the customize: section

  friendly_name: Christmas Tree Water
  icon: mdi:water
  device_class: moisture

This one worked too and easier to configure, thank you.