If the issue is a malfunctioning alarm system, then the car will likely not start.
Been a long while since I owned an 850, but I recall accidentally setting off the alarm (reaching through the window to unlock the door). It was a not so easy task to silence it. IIRC the key wouldn't work in the ignition and neither did the keyless entry clicker. Only cycling the key in the door lock finally did it.
First things first is to disconnect the wires to the horns; no good decisions can happen with that noise.
If will start then I'd look into the wiring at the steering wheel/column. The turn signals, hi-beam switch, and horn is all right there.
There are little red plastic retainers on the horn contacts in the steering wheel that are prone to embrittlement and turning to dust with age, usually causing the horn to simply stay on. No reason for that to affect the headlights though.
Good luck,
Will
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XC60 / Odyssey
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