Settled status is granted to those who have lived in the UK continuously for 5 years and if granted, allows you to continue living and working in the UK indefinitely.
Pre-settled status is granted to those who haven’t yet lived in the UK continuously for 5 years and so they are given the right to remain in the UK for a further 5 years. The logic is that you will then be able to convert this into settled status once you have reached 5 years in the UK in total.