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They are an alternative currency used to buy items (mainly gear). They are acquired through PVP. The most common way is through honorable kills but there are other ways. Participation in BGs is the easiest/quickest way to get them. You get more the higher level you are per battleground and at level 70 there are a few weekly quests that hope up in Wintergrasp that give some honor as well as a small bonus with each PVE boss kill if your faction holds wintergrasp.
90 Gnome Mage
In addition to this post, winning a battleground will grant you more honor points, especially if your in a holiday BG.
Battleground holidays occur during all weekends, starting on Thursday night at Midnight and continuing until early Tuesday morning. During a holiday, emissaries from the featured battleground are found in the major cities, and honor & faction rewards for performing objectives in that battleground are increased.
Those are battlegrounds. They're instanced zones where teams of Alliance and Horde fight each other over certain objectives. For example, Warsong Gulch is a game of "capture the flag" between the two factions. Arathi Basin involves capturing resources faster than the other team. Alterac Valley is about killing the other team's boss OR draining them of precious resources by destroying towers and buildings. The sizes of the team vary as well. Warsong is 10v10, Arathi is 15v15, and Alterac is a full 40v40 raid.
You can read up about the various battlegrounds here:
Also feel free to ask any questions - we're more than happy to answer or find resources for you :D
Edited by Icedragon on 10/1/2012 10:54 AM PDT
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