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Ballotpedia uses the term withdrew when a person announces a candidacy or files for an election but later decides?by his or her own choice?not to appear on the final ballot.
Rescind an online application The process may differ depending on the application portals, but you often can log into your account and choose an option or click a button to "withdraw" the submitted application. If you cannot find such an option and do not have a contact at the company, you do not have to do anything.
Do employers get a notification on Indeed when you have withdrawn your application? Or what do they see? They see your application no longer there. That said if they've already downloaded your resume they may not see it.
So it could be a declination (maybe didn't meet requirements for job, chose another candidate, etc) but if not mapped correctly could show up as ?withdrawn? to the end user (candidate).
Dear [hiring manager's name], I first want to thank you for the time you've taken with me during the hiring process and for considering me for the [title of the job you're applying for] at [name of organization]. I regret to say that I'm writing to let you know that I have decided to withdraw my application.