One of the first things that is instilled in students at Hogwarts is that their blood status is not a priority. They, like many people understand that there are different types of people of different nationalities, races, and blood status. This is something that we have tried to instil as it was instilled to us.
A magical person is someone that is capable of performing magic and comes from 3 separate blood status groups.

1) PURE BLOOD: These are people that have no other type of blood in them such as my Weasley Family, the Gaunt Family & the Malfoy Family. Some people wish to keep their blood purely magical and that is a personal preference.

2) HALF BLOOD: These are people that have magical and non-magical heritage such as myself, both my parents, Harry Potter and various individuals in our family.

3) MUGGLE-BORN: These are people that are able to perform magic however they do not come from a magical family such as Hermione Granger. People have used the word Mud-blood to describe these people as they think they have dirty blood and shouldn’t be taught magic.

I had to write about my blood status when I started Hogwarts, I think I said “My mother and father are both dead, I live with my uncle. I believe that I am a half-blood because both of my parents were half-blood. I would prefer to say that I am a mix though.” I said this because I have a small amount of Woodland Elf blood. see "Reigning Roots"

There are various people like this. Some people such as my sister-in-law Fleur are part Veela, Hagrid is part Giant and some are part dwarf. People that come from magical families and yet are unable to perform magic are called Squibs. These people can see magical things so are still part of the community.

A non-magical person is called a MUGGLE these people are unable to perform magic or see many magical creatures such as dementors. Both of my grandfathers were muggles. For more information on this read “The Muggle in Me”