Let's say one of the monitored websites went down completely. What happens is that the monitor on the status page turns red and shows there is downtime.
To give users more insight we will create a new report called Homepage is unavailable and select homepage monitor from not affected to Downtime. We can also provide a brief description of the incident "example.com website is down for all users".
Then we start investigating and once we have an update, for example, we see that our cloud provider is having problems we can create a status update with this information.