How can I edit the state value and change the status of a record in the frontend? 

You can use up to 10 positions to make custom states possible. You may either add a title for each state, select a color and choose a list action plugin to perform an action on the records selected in the list. List action plugins can be either offered by crosstec.org or from the community and are regular Joomla!® Plugins.

Here is example of how to use List states. 

Go to your view > List states tab and add a title for each state you want to use. You can use default colors for your states or choose the ones you prefer.

Afterwards you need to go to Permissions tab and among other relevant permissions you should enable Edit State.

For last important steps go to your View tab > Advanced options > Show section and enable following options:

- Select

- State

At frontend you will see select column where you can choose data you want to add relevant state to. In Bulk Options at the top of the page you will see all of your states. Just choose the one you want and add it to selected record.