What each setting means for me:
Watching: I am currently enjoying this anime/manga, with no plan to stop.
Watched: I have already watched/read this anime/manga
Want to Watch: I haven't seen any of this yet, but I would like to start reading/watching it.
Stalled: I plan on starting this up again, but for now, I don't have the time to continue it.
Won't Watch: I've read the plot/seen bits of it and I don't like it. I'm never going to watch/read this.
Dropped: I've watched/read a few episodes/chapters, and I didn't like it. Stopped watching/reading it.