Weird grandparent names

My MIL wants us to call her “Honey” rather than something normal like Gigi or grandma or Grammy. Would it be disrespectful if we just refer to her as “grandma” first name rather than use the nickname she wants? It just feels weird to me to call her honey when talking to my kid when it gets older (ie “we’re going to honey’s house). Is this a weird grandparent name or am I being judgy?

This is first grandchild so it’s not like Honey is established yet.

Edit: I should clarify that this is my so’s second stepmom who wants to be called this. That his dad remarried less than 2 years ago.