Tiers in Pokémon
Pokémon features hundreds of species available for use, all varying in their base statistics and moveset potential. There are currently six tiers with various fansites individually deciding the Pokémon assumed to be in those tiers, most notably Smogon. The Pokémon tier list has received much criticism, because there is no "official" tier list for Pokémon.
Most battles are conducted using every tier except Uber. However, it is common for some battles to maintain use in one tier only. Usually Under-Used only, or Never-Used only.
Uber
The Uber tier is not designed to be balanced, its purpose is to be a banlist for OU and the other tiers, however this does not mean it is not, or cannot be played. Pokémon in the Uber tier are deemed too powerful or centralizing to be used fairly among other Pokémon. A common misconception, especially among players new to competitive battling, is that Uber tier contains all, or only, legendary Pokémon. While it is true that a majority of the accepted Ubers are indeed legendary, some are not and many legendary Pokémon are far from being Uber.
While most Pokémon in the Uber tier are there for their ability to power through teams or be defensive behemoths, Wobbuffet is included primarily because of its Shadow Tag ability, along with Encore, which lets it trap any opponent Pokémon and lock them into any move, giving a free turn of set-up for any Pokémon, or giving an almost free kill with Counter or Mirror Coat which let it reflect most moves back. Tickle+Encore allows Wobbuffet to bring a slow Pokémon using a setup move down to -6 Defense with almost no risk, ready for a Pursuit user to switch in and KO. Wobbuffet's pre-evolution, Wynaut, is sometimes banned for similar reasons. Garchomp is another non-legendary that some fans consider for the list due to its high stats, brilliant movepool, and great typing.
Over-Used
Over-used, commonly abbreviated as "OU", refers to Pokémon that are most commonly seen in standard play. It is a misconception that all OU Pokémon are the most powerful in the game. OU is a term based on usage; however, there is a distinct correlation between usage and usefulness in the system.
There are exceptions to this such as Magneton in Generation III, where it was considered an OU Pokémon merely because it was used primarily as a counter for Skarmory; a Pokémon commonly seen due to its high defense, low weaknesses, and stall-based movepool. The introduction of Magnezone, an evolution of Magneton, solidified its place in OU, due to increased stats, and a broader movepool.
Borderline
Pokémon in Borderline, commonly referred to as "BL", are considered by some to be too strong for Under-Used, but may be found in some OU battles. They are classified as BL because they generally do not have the capacity to compete in solid OU consistently due mostly to stats, weak movepools, or metagame shifts that makes the niche of the Pokémon less needed.
Under-Used
Under-Used, commonly referred to as "UU", designates Pokémon whose use is limited as they are not strong enough for general OU competition, usually due to sub-standard stats, movepools, easily exploitable weaknesses, or the existence of a stronger Pokémon that do nearly the same job as the UU Pokémon, making players use the stronger Pokémon instead of the UU Pokémon, giving it little use. UU Pokémon can, and are, used in OU battle, but are usually recommended by some solely for UU-type battles.
Never-Used
As the name implies, Never-Used, commonly referred to as "NU", is for Pokémon that have problems competing even in UU due to dismal stats and/or movepools. This is where most novelty Pokémon reside in tiers as well as Pokémon found early in a player's journey. They are recommended by most only for use in NU only battles. However, most NU Pokémon are very common among contest coordinators.
Not Fully Evolved
This tier is more commonly known as "NFE", and as the name implies, contains almost every Pokémon that has not yet reached its final evolution. As such, they are rarely, if ever, used in competitive play, with very few exceptions.
Uber:
Arceus
Darkrai
Deoxys (all forms)
Dialga
Garchomp
Giratina (both forms)
Groudon
Ho-oh
Kyogre
Latias (holding soul dew)
Latios
Lugia
Manaphy
Mew
Mewtwo
Palkia
Rayquaza
Shaymin-S
Wobbuffet
Wynaut
OU:
Aerodactyl
Azelf
Blissey
Breloom
Bronzong
Celebi
Dragonite
Dusknoir
Electivire
Empoleon
Flygon
Forretress
Gengar
Gliscor
Gyarados
Heatran
Heracross
Hippowdon
Infernape
Jirachi
Jolteon
Kingdra
Latias (not holding soul dew)
Lucario
Machamp
Magnezone
Mamoswine
Metagross
Ninjask
Roserade
Rotom (all forms, but original)
Salamence
Scizor
Skarmory
Smeargle
Snorlax
Starmie
Suicune
Swampert
Tentacruel
Togekiss
Tyranitar
Vaporeon
Weavile
Zapdos
BL:
Abomasnow
Cresselia
Crobat
Gallade
Honchkrow
Porygon-z
Shaymin (Land)
Staraptor
Yanmega
UU:
Absol
Aggron
Alakazam
Altaria
Ambipom
Arcanine
Azumarill
Blastoise
Blaziken
Chansey
Claydol
Clefable
Cloyster
Cresselia
Donphan
Drapion
Drifblim
Dugtrio
Feraligatr
Froslass
Hariyama
Hitmonlee
Hitmontop
Houndoom
Kabutops
Lanturn
Leafeon
Ludicolo
Mesprit
Milotic
Mismagius
Moltres
Nidoking
Nidoqueen
Omastar
Poliwrath
Qwilfish
Raikou
Regirock
Registeel
Rhyperior
Rotom
Sceptile
Scyther
Slowbro
Spiritomb
Steelix
Swellow
Tangrowth
Torterra
Toxicroak
Umbreon
Uxie
Venasaur
Weezing
NU:
Ampharos
Arbok
Ariados
Armaldo
Articuno
Banette
Bastiodon
Beautifly
Beedrill
Bellossom
Bibarel
Butterfree
Cacturne
Camerupt
Carnivine
Castform
Charizard
Chatot
Cherrim
Chimecho
Clamperl
Corsola
Cradily
Crawdaunt
Delcatty
Delibird
Dewgong
Ditto
Dodrio
Dunsparce
Dustox
Electrode
Entei
Espeon
Exeggutor
Exploud
Farfetch'd
Fearow
Flareon
Floatzel
Furret
Gardevoir
Gastrodon
Girafarig
Glaceon
Glalie
Golduck
Golem
Gorebyss
Granbull
Grumpig
Hitmonchan
Huntail
Hypno
Illumise
Jumpluff
Jynx
Kangaskhan
Kecleon
Kingler
Kricketune
Lapras
Ledian
Lickilicky
Linoone
Lopunny
Lumineon
Lunatone
Luvdisc
Luxray
Magcargo
Magmortar
Magneton
Manectric
Mantine
Marowak
Masquerain
Mawile
Medicham
Meganium
Mightyena
Miltank
Minun
Mothim
Mr. Mime
Muk
Ninetales
Noctowl
Octillery
Pachirisu
Parasect
Pelipper
Persian
Phione
Pidgeot
Pikachu
Pinsir
Plusle
Politoed
Porygon2
Primeape
Probopass
Purugly
Quagsire
Raichu
Rampardos
Rapidash
Raticate
Regice
Regigigas
Relicanth
Sableye
Sandslash
Seaking
Seviper
Sharpedo
Shedinja
Shiftry
Shuckle
Skuntank
Slaking
Slowking
Solrock
Spinda
Stantler
Sudowoodo
Sunflora
Swalot
Tauros
Torkoal
Trapinch
Tropius
Typhlosion
Unown
Ursaring
Venomoth
Vespiquen
Victreebel
Vigoroth
Vileplume
Volbeat
Wailord
Walrein
Whiscash
Wigglytuff
Wormadam
Wormadam-G
Wormadam-S
Xatu
Zangoose
NFE:
All other not fully evolved pokemon
Source of Tier List: Smogon.com