Someone who's respected has a great reputation. Aretha Franklin wanted to be respected, so she sang “r-e-s-p-e-c-t, find out what it means to me,” which turned out to be a kind of anthem for women when it came out in 1967.
A respected college is esteemed, or thought highly of, because it produces great scholars and important research. A respected magician might be one who regularly amazes audiences and never gives away her secrets. And if you have earned respect and admiration from your friends or colleagues, you are also respected. This complimentary adjective comes from respect and the Latin root respectus, "regard" or "act of looking back" as in looking again to show respect. Just ask the Queen of Soul.