Status
The Status area of the Combat screen is pretty important, rather than flooding your main Status area with fight spam its sent to this little baby status window.

So after each action is conducted the results are displayed here, usually with the subsequent response from your target.

This area is also used when the fight system needs further player driven responses such as needing you to choose a style or spell, in this case when the status area shows a choice you have to pick one for the fight to continue.