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I am Honduran, fully.

For the purposes of my applications, I obviously check Latino/Hispanic for ethnicity but for race I am unsure of what to put. I have clicked Latino whenever it has shown up as a "race" option for undergrad but for this idk what to put. I am surely not white but I'm also not black. How, if at all, does URM tie into this?

As far as I know, you won't get the traditional URM bump, but it might help on the margins. Historically, the two groups hispanic groups that got a URM bump were Mexicans and Puerto Ricans. Otherwise being hispanic from another country wont hurt your application, but it won't get you a substantial bump. Your application will likely be 90% GPA and LSAT, 5% soft factors, and 5% hispanic bump generally.