Stephanie- i am not aware of a way to customize health categories.
You can configure progress bars to show status/health automatically using thresholds that you can set.: Here is an article to help with that configuration.https://community.atlassian.com/t5/Jira-Align-articles/Jira-Align-How-to-Configure-and-Use-Progress-Bars/ba-p/2218882
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