You can choose to hide cancelled appointments using the toggle in the top right of the calendar. Turning this 'on' will hide all appointments with a status of canceled, late cancel, or no show and will allow you to see availability more clearly.
This can be incorporated into your default view settings, but easily turned on and off at any time when operating in the calendar.
This option does NOT carry over to the daily calendar in the Dashboard. In the Dashboard, all appointments, regardless of status, will remain visible.