It’s working - I think it’s the the Dyson fan that’s at fault, it does not always update the air quality status.
sensor:
- platform: template
sensors:
nursery_air_quality_name:
friendly_name: "Air Quality"
unit_of_measurement: "State"
entity_id: sensor.nursery_air_quality
value_template: "{%if states.sensor.nursery_air_quality.state == '1' %}Good{% elif states.sensor.nursery_air_quality.state == '2' %}Fair{% elif states.sensor.nursery_air_quality.state == '3' %}Poor{% elif states.sensor.nursery_air_quality.state == '4' %}Very Poor{% endif %}"