There are two kinds of titles in Midkemia. The first are prefixes and the second are suffixes. A prefix is up to thirty characters that come before your name, and a suffix is up to thirty that come after your name.
Lady Anita, Princess of Krondor
In this example:
"Lady" is the prefix.
"Anita" is the character's name.
", Princess of Krondor" is the suffix.
Titles can generally be given by leaders or high-ranking members of cities and guilds. To remove all titles from yourself simply UNTITLE, and they will be removed.
You can see some of the titles that another player has by typing HONORS <player>.