You will have to create (if you haven't done) the new status and then edit the workflow associated with the Project / Issue Type that you want to modify. For more details, take a look at https://confluence.atlassian.com/display/JIRA/Configuring+Workflow
Not sure if I understand the question correct. Do you want to change the status name from "Submitted" to "Approved Work Queue" then do as Pedro mentioned.
if you want to change the status in an issue you must use the transition from "Submitted" to Approved Work Queue". In order to do so you need to check if you have the correct permission (transition issue) and that the conditions that may be definied in that transition are met.
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