Pour 1/2 cup water into a small microwave-safe bowl, and sprinkle with gelatin.
Combine remaining 1/2 cup water, granulated sugar, corn syrup, honey, and salt in a medium heavy saucepan over medium-high heat; bring to a boil, stirring occasionally. Cook, without stirring, until a candy thermometer registers 250°. Pour the sugar mixture into the bowl of a stand mixer, and let stand until a candy thermometer registers 210°.
Microwave the gelatin mixture at HIGH for 20 seconds or until gelatin melts, stirring after 10 seconds. With mixer on low speed, beat sugar mixture using a whip attachment; gradually pour gelatin mixture in a thin stream into sugar mixture. Add vanilla, orange oil, and food coloring. Increase speed to high; whip mixture at high speed until light and fluffy (about 5 minutes). Using a spatula coated with cooking spray, scrape mixture into an 11 x 7-inch baking pan coated with cooking spray; smooth top. Let stand 2 hours.
Sift together powdered sugar and cornstarch into a jelly-roll pan. Using an offset spatula coated with cooking spray, remove marshmallow from pan and place into powdered sugar mixture. Using scissors well dusted with powdered sugar mixture, cut marshmallows into 78 (1-inch) squares. Dust with powdered sugar mixture; shake marshmallows lightly to remove excess sugar mixture.