In power gear honing, the random distribution of abrasive grains on the tooth surface of the honing wheel is the main factor that influences the machining performance of high-quality hardened gears. In order to investigate the micro-edge cutting performance of the active abrasive grains on the workpiece gear, the real honing process is simplified into a micro-edge cutting model with random distribution of active abrasive grains in the cells of the meshing area by obtaining the random distribution states such as the position, orientation and quantity of the honing wheel teeth. The results show that although the active abrasive grains are distributed at different locations, they all experience three types of material removal—slip rubbing, plowing and cutting—allowing the gear honing process to have the combined machining characteristics of grinding, lapping and polishing. The active abrasive grains in first contact produce high honing force, high material removal efficiency and poor surface roughness on the machined workpiece, while the latter ones have the opposite effects. The dislocation angle affects the chip shape and chip discharging direction, and the highest honing force and material removal efficiency is achieved with a dislocation angle of 135°. The higher the number of active abrasive grains in a given contact area, the higher the material removal efficiency.