A more thorough explanation:

honor, n.

1. In the United States, a title of respect given to judges and certain other public officials.
2. In England, a term used to refer to dignities, privileges, degrees of nobility, knighthood, and other titles that are granted by the Crown.
3. In English history, a seigniory of several manors held under one baron or lord paramount.

honor, v.

1. To accept or pay a negotiable instrument when presented.
2. To recognize, salute, or praise.

Examples:

• A judge is addressed as "Your Honor" in court.
• The Queen of England can grant titles of honor, such as knighthood, to individuals who have made significant contributions to society.
• In medieval England, a baron could hold several manors under one title of honor.
• When a check is presented to a bank, the bank may choose to honor it by paying the amount listed on the check.
• At a military ceremony, soldiers may honor their fallen comrades by saluting their caskets.

The examples illustrate the different meanings of the term "honor." The first three examples show how "honor" can refer to titles or privileges granted by a higher authority. The fourth example demonstrates how "honor" can be used in the context of banking and finance. The fifth example shows how "honor" can be used to mean showing respect or recognition for someone or something.