What does cancelled driver license mean I understand revoke or suspended but not cancelled.?

Answer 1

Due to the fact that no state is given in the question the following will have to be based purely on supposition;

Revoked or suspended would indicate that the DMV was taking action aagainst a VALIDLY issued license.

"Cancelled" would mean that the entire record of the license was wiped out.

A "cancelled" license would tend to indicate that the DMV determined that it was issued in error or was issued under fraudulent circumstances.

An example of "in error" might include mistakenly issuing it to someone who, it has been determined, was not a legal resident of the state and therefore ineligible to possess a license.

An example of a "fraudulent circumstance" might include determining that the person who applied for the license was ineligible to be issued a license (i.e.: driving privilege revoked by another state - or, never took the required driving test - etc), or it was issued to someone impersonating someone else, or who used an alias name or gave false information.

The above is based on supposition - for an exact explanation call the state DMV for an explanation.