Yes, bugs severity and status labels can be updated as needed. To change the statuses.

  1. Log in to Yodiz.
  2. Click the
    Project Settings
    from the top right Setting menu. projectlevelsettings
  3. Press the Settings button for the project you want to edit. projsetting
  4. Click the
    Manage Status Set Scheme
    tab from the top. statusset

From this screen you can edit different statuses for different situations in Yodiz. For more info click here.