This is Traffic Jam Pilot that we've heard about before. It will be hands-free self-driving but only at low speeds, on certain highways and in traffic jam conditions. So it will be L3 but with a very limited ODD.
So in terms of self-driving capability, it won't be impressive. I think the real "news" is that by declaring it L3, the car will be responsible for driving when the system is on. So Honda will be responsible if anything goes wrong. That's probably why the ODD is so restricted. Honda is limiting the ODD that the risk will be as low as possible. But it does represent a big jump from the driver being responsible to the car being responsible in certain conditions.
We should not underestimate the significance of this jump from driver responsibility to car responsibility. It is easy to deploy features that the driver is responsible for. The features can be "beta" even and it does not matter since the driver is supposed to pay attention. If anything goes wrong, the automaker just puts the blame on the driver for not paying attention. It is different when the automaker assumes responsibility. Now, they are implying that the features work to a certain degree that the driver can trust the car completely. With the automaker assuming responsibility, the automaker now has "skin in the game" if anything goes wrong.