In authorized values, there is a column for Description(OPAC) for Lost, but even when you fill in the OPAC description column, the item still shows in the OPAC simply as "lost" rather than what you write for the description.
I know that for Lost in particular many libraries do not want all of the different
lost statuses to show up in the OPAC (for example, the patron doesn't care if it's long ovedue (lost) or lost - either way they can't have it).
But some libraries that go to the effort of filling in the Description(OPAC) column would prefer to see the description that they've written. It seems that if there is an OPAC description column in the authorized value list, then that is what you should see in the OPAC.
I found some related discussion on Bug 4173.
*** This bug has been marked as a duplicate of bug 4173 ***