I use Home Assistant to tie all of the devices in my house together. I recently purchased a z-wave sensor for my garage door to tell if it was open or closed. Home Assistant would show the sensor as either being on or off. Since it represented a door I wanted Home Assistant to show it as open or closed.
Below is how I did it. My sensor’s entity is binary_sensor.garage_door.
binary_sensor.garage_door: friendly_name: 'Garage Door' device_class: garage_door