Liquid honey is a quest item given to the player by Elena during the Biohazard quest. The player must smuggle it into the gated area in the south-east of Varrock by giving it to Chancy, one of the chemist's assistants in Rimmington, who will then carry it to The Dancing Donkey Inn.
Remember, you should only give the honey to Chancy, the gambler, because he can't wager it in a game because of its low value. If it is given to Hops, he will drink the fluid, and if given to Da Vinci, he will make "an art piece" with it.
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