Re: is there a difference between oils
The purpose of honing (or knife sharpening) oil (or water soluble oil mixed with water) is to reduce friction (and thus heat) and keep the chips (particles) removed from the work piece in suspension (and usually flushed away in machine tool honing). Thus the abraded particles do not embed in and foul the abrasive media preventing it from performing its cutting action.
Cast iron engine block bores and mains are usually honed with a material that is essentially similar to kerosene and lighter than #2 fuel oil.
The 3 in 1 brand of oil was originally advertised as "lubricates, cleans, and protects". It is basically a non-detergent motor oil and a little naptha. Think not; look up the MSDS for it and several non-detergent motor oils.