Absolutely terrible. "Code of Honor" represents a period when bad TNG wasn't bad TNG, but instead bad TOS. In an attempt to negotiate the acquisition of a much-needed vaccine to cure a deadly plague, the Enterprise crew has dealings with the Ligonians, who value customs of ritualistic honor above all else. Play ball and respect their customs, or no vaccine. Now there's an evolved sensibility. And a premise that leads to an idiotic plot.
One of the rituals involves the kidnapping of Lt. Yar by Lutan (Jessie Lawrence Ferguson), who is quite taken by Yar's presence as a Strong Woman (or some such). Picard must subsequently figure out how to get Yar back without offending the Ligonians and losing the vaccine. It's about here where Lutan's wife demands Yar participate in a fight to the death.
The story requires unwavering endurance to sit through, moving at glacial pace and inviting ridicule at nearly every scene. It employs every cliché in the TOS rulebook, including Goofy Alien Customs, a Hand-to-Hand Fight to the Death, Clever Captain Trickery, and Silly Gender Roles Played Stupidly. The fight to the death is particularly inept; stunt sequences have rarely looked so cheesy. One of Trek's worst episodes.