In the past, the dichotomy was between "Tailored" and "Status Quo"
In a Tailored game, all encounters and adventures are presented with the PCs in mind. If the PCs run into a rumor that there's a haunted house, and they go to investigate, that haunted house will be things the PCs might be expected to deal with, in terms of power. If they are first level there will be zombies and skeletons. At higher levels, there will be vampires or liches, to suit.
The effect here is kind of like Ye Olden Days, when we'd play modules rather than making up our own adventures. The DM would pick a module that was of appropriate level for our PCs. When we were 10th level, we picked modules for PCs 9-12th level. We no longer ever did modules of 1-3rd level, and we avoided the modules for 18+ level. We played whatever module the DM picked, and if we tried to do otherwise, the game kind of broke, because the DM only had the one module prepped.
Taking the idea a step further, in a very strongly Tailored game, there is a preordained Plot Arc, entirely for the PCs - the world is merely a backdrop, and all events worth looking at are centered on their story. The Plot Arc is the central concept, and the world subordinate to it, so the PCs cannot choose to opt out of the plot arc. The DM has chosen the Adventure Path or series of modules ahead of time, and the players are expected to follow along.
In a Status Quo game, the world is pre-seeded with stuff, independent of the PCs. The world has it's own distribution of things, low to high power, and the PCs are dropped into it and wander around as they see fit, and do what they want.
The effect is rather like the DM has chosen locations for all those modules, and you look around and try to find them. The DM puts out information for the PCs to use to make decisions, but it is entirely possible for a low-level character to wander into a high-level module, and get creamed. The DM does not stop them from doing so, and does not alter the module so the PCs have a chance.
There is no preordained plot arc in a Status Quo game. The only "story" is what you piece together out of the PCs wanderings after the fact. Elements in the world are not sitting around waiting for the PCs, and will move forward on their own accord. If the PCs missed the important bit that means the bad guy ends the world, then that's how it is.
These days on EN World, the term "Status Quo" has largely been replaced with "sandbox".