Standardization is when an address is reformatted to match the standards set by the United States Postal Service (USPS) so it can be processed by them. When run through a standardizing program, addresses will be "cleaned up" commas will be added between city and state if they're missing, words like "street" and "boulevard" will be abbreviated properly, words will be capitalized in keeping with the USPS system, and so on.
Standardizing doesn't break anything down into components. Nothing is labeled or categorized by the end of the process. The word "street" is recognized because it's the word "street," not because of it's position in the syntax of the address.
If you're looking to shape up an address list so that it looks more professional, you're looking for standardization. BatchLeads runs every record imported through a standardization system to ensure address accuracy and proper database format.