The Armor Statue is a craftable statue and furniture item used for decorative purposes. It is sometimes used as a way to make use of unwanted stone. This statue can also be found underground. It has no known purpose beyond decoration. Unfortunately, unlike the mannequin, you can not put armor on it.
Because of the low production cost, many players find this item great for decoration.
Sometimes, when you destroy one of the other statues, you pick up an Armor Statue (confirmed in 1.1; 1.1.1 unknown).