Honey is produced by bees. They travel to flowers, and collect nectar, which they put in their honey stomach, and that begins the process of making honey. When the bee gets back to the hive, it gives the honey to another bee, and in turn they all digest it a little bit. When they are through, it is still a little runny, they put it in the honeycomb and cover it in beeswax to sit. After that process, you are left with honey.
In order to communicate the direction of the flowers, the bees move their bodies in circles and wiggles to indicate which direction and how far away the flowers are. Then more bees can collect nectar to make more honey for the winter.