Honours are titles awarded to people who have done something special in life.
They are basically the same as the prizes given out at end of term assemblies, but these honours are for the whole country.
The Queen chooses who gets them, but she follows the advice of her Prime Minister.
About three quarters of the honours go to names put forward by government departments.
The rest are suggestions from people who write in to the Prime Ministers' Office.
Anybody can suggest a British person for an honour.