RECOVERY is the normal and usual status of the database where users can connect and access the database (given that they have the proper permissions set up).
NORECOVERY allows the Database Administrator to restore additional backup files such as Differential or Transactional backups. While the database is in this state then users are not able to connect or access this database.
STANDBY is pretty much the same as NORECOVERY status however it allows users to connect or access database in a READONLY access. So the users are able to run only SELECT command against the database. This is used in Log Shipping quite often for reporting purposes. The only drawback is that while there are users in the database running queries SQL Server or a DBA is not able to restore additional backup files. Therefore if you have many users accessing the database all the time then the replication could fall behind.
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