a permit from an authority to own or use something, do a particular thing, or carry on a trade (especially in alcoholic drink)

a gun licence

a television licence fee

freedom to behave as one wishes, especially in a way which results in excessive or unacceptable behaviour

the government was criticized for giving the army too much licence

grant a licence to

a pub has to be licensed by the local justices

he ought not to have been licensed to fly a plane