When the 3.3 patch is released, there will be a new LFD (Looking for Dungeon) feature. This allows you to join a queue for a dungeon, stating which role(s) you are able to fill in the group. Hovering over the LFD icon on your minimap then gives you a tooltip displaying which roles for your group have been filled so far. What LFGStatusIcon does is eliminate the need to hover over the icon to get an update on your group status. Instead, five little dots appear around the LFD minimap icon which are colored based on whether that role for the group has been filled.
Be ready for the new patch and download your copy of the addon here.
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"You'd be surprised how many people violate this simple principle every day of their lives and try to fit square pegs into round holes, ignoring the clear reality that Things Are As They Are." -Benjamin Hoff, The Tao of Pooh