Está is the conjugation of the verb está for the third person singular in the simple present. The verb estar is being used here as <em>location,</em> describing where The Grand Canyon is permanently. In fact, The Grand Canyon is a steep-sided canyon carved by the Colorado River located in Arizona, United States. Finally:
<em>El Gran Cañón </em><em>está </em><em>en el estado de Arizona</em>