There's a difference between pursuing honor and accepting honor.
It’s true that we are taught that honor is something that “can remove a person from the world” (Avot 4:28). Honor – as well as jealousy and lust – remove a person from this world by capturing his focus. By pursuing these ends, his aim eventually becomes the fulfillment of the jealously, lust, or honor. At that point, the person no longer is using this world for that which it was created – to come closer to God.
Receiving honor, however, will not in and of itself remove a person from the world, unless from there he is pulled into pursuing it.
Sometimes it is quite proper to accept an honor. A specific honor may even be useful for your future - for example, to help you get a job. In such a case the acceptance of an honor is considered a normal part of the effort involved in achieving that particular goal.
Receiving honor can also be an inspiration for others to do good. For example, when one donates money to a charitable organization, allowing the donation to be known will inspire others to do similar good deeds. (Note: One should not publicize a charitable gift without the consent of the recipient.)
Sometimes one's honor will give pride to his parents. Through this, one can fulfill the mitzvah (commandment) of honoring one's parents.
If you were the one offered the award by your school, congratulations! Unless your sole purpose is to have more and more honor heaped upon you, accepting the honor is fine. The correct attitude is not to think of the honor as an end in itself, but rather as a means to an end.
