varsity letter vs honor

varsity letter and honor both are nouns.

Word	Noun	Adjective	Verb	Adverb
varsity letter	Yes	No	No	No
honor	Yes	No	Yes	No

As nouns, honor is a hypernym of varsity letter; that is, honor is a word with a broader meaning than varsity letter:

Other hypernyms of varsity letter include accolade, award, honour, laurels.

varsity letter (noun)	honor (noun)
an award earned by participation in a school sport	the quality of being honorable and having a good name
	a woman's virtue or chastity
	a tangible symbol signifying approval or distinction
	the state of being honored