A standby spot means that a child has requested a spot but one isn't currently available. When this happens you'll get a notification that someone is requesting the spot so that you can either tell enrolled parents to drop a spot or you can always make one available if you have the capacity. 

The parent who requested the standby spot is told that their request is "Pending." The spot will not be fulfilled unless and until you, as the daycare, approve their request (this can happen automatically depending on their status) and open a spot. 

You can see which days have standby requests in a calendar view from your dashboard. To do so, click on the room where you want to see the standby spots and select Manage Open Spots. If there is a day(s) with standby requests it will be highlighted in yellow.