States are variations of an object. So, in the Timeline panel, the object would only take up one line. But the States panel will show all the States/variations of that object.
The link I provided above goes to the User Guide article about working with States. It includes details about how to add and edit States. The samples they use show the states for an inserted character. But the same basic instructions apply to any text box or object.
If it's still confusing, I suggest you (re)view Articulate's basic tutorials about how Storyline works. Understanding States, Layers, the Timeline, etc. helps you move beyond basic PowerPoint-like courses.
