You have something of a reputation and standing (earned or unearned) within the local community of Kindred. Status among Camarilla society is often derived from your sire's status and the respect due your particular bloodline; among the Sabbat, status is more likely to stem from the reputation of your pack. Elders are known for having little respect for their juniors; this Background can mitigate that somewhat.
High status among the Camarilla does not transfer to Sabbat society (and will most likely make you a notorious target for your sect's rivals), and vice versa. Similarly, Anarchs can be considered to have zero Status, unless they have somehow garnered so much power and attention that they must be taken seriously. You may have occasion to roll your Status in conjunction with a Social Trait; this reflects the positive effects of your prestige.