Under the Motor Vehicle (Construction and Use) 1986 Regulations, there is mention, and definition of what a horn is:
A horn means an instrument, not being a bell, gong or siren, capable of giving audible and sufficient warning of the approach or the position of a vehicle to which it is fitted .
From 1973 onwards, a horn has to have a single continuous and uniform tone (so two tone horns will not pass MOT), it must not be "harsh or grating" and "must be loud enough to be heard by another road user".
It does not stipulate any dB range afaik.
The MOT itself only require that a horn be fitted and must be constructed and used in accordance with the regulations above, so no, there does not appear to be any restrictions on how loud it is.
As a matter of courtesy come MOT time, I will be warning the tester that the horn is pretty loud so that he doesn't deafen himself. If you know that your horn emits noise above the threshold for hearing damage and you don't warn the tester, it is a moot point whether you could conceivably leave yourself open to civil proceedings should they suffer any hearing damage as a result of the test.
I think that common sense dictates that you fit and use a horn that is loud enough to be heard close by but not so loud that it could potentially damage the hearing of those nearby (particularly pedestrians). To be that loud beyond a few metres would be a bit reckless.