Generally, there’s no advantage to substituting honey for sugar in a diabetic eating plan. Both honey and sugar will affect your blood sugar level.
Honey is sweeter than granulated sugar, so you might use a smaller amount of honey than sugar in some recipes. But honey actually has slightly more carbohydrates and more calories per teaspoon than does granulated sugar, so any calories and carbohydrates you save will be minimal.
If you prefer the taste of honey, go ahead and use it, but only in moderation. Be sure to count the carbohydrates in honey as part of your diabeteic eating plan.