"Psychology thingy"? Lol.
Psychologically speaking, it's called an incentive. Another way of saying it is "reinforcement".
Psychologically speaking, "reinforcement" is best applied when the person can see the rewards/punishment of their behavior.
Simply being honored is not rewarding, the outcome of honor is the reward.
If we can't see the outcome, the reinforcement is ineffective.
Seeing the progress is effective reinforcement because it encourages players that their good behavior is, in fact, being rewarded.
If Riot isn't showing us our progress, then we are not being reinforced to believe our good behavior is rewarded.
Psychologically speaking, showing progress is a more effective means to reward good behavior. If people are getting honored every game, 15 games a day, 5 days a week, and they're still at Honor 2 with no clue how much honor they need for 3 then they'll deviate from the system.
It's like having a job where they withhold your paycheck, but insist that your many hours will get you paid.