What does it mean to 'sanctify'? According to biblical understanding, sanctity or 'holiness' in the fullest sense is attributable only to God. Holiness expresses his particular way of being, divine being as such. So the word 'sanctify' (qados [qadosh] is the word for 'holy' in the Hebrew Bible) means handing over a reality--a person or even a thing--to God, especially through appropriation for worship. This can take the form of consecration for sacrifice (cf Exodus 13:2; Deuteronomy 15:19); or, on the other hand, it can mean priestly consecration (cf Exodus 28:41), the designation of a man for God and for divine worship.
The process of consecration, 'sanctification', includes two apparently opposed, but in reality deeply conjoined, aspects. On the one hand, 'consecrating' as 'sanctifying' means setting apart from the rest of reality that pertains to man's ordinary life. Something that is consecrated is raised into a new sphere that is no longer under human control. But this setting apart also includes the essential dynamic of 'existing for'. Precisely because it is entirely given over to God, this reality is now there for the world, for men, it speaks for them and exists for their healing. We may also say: setting apart and mission form a single whole.
The connection between the two can be seen very clearly if we consider the special vocation of Israel: on the one hand, it is set apart from all other peoples, but for a particular reason--in order to carry out a commission for all peoples, for the whole world. That is what is meant when Israel is designated a 'holy people'.
--Benedict XVI, Jesus of Nazareth. Holy Week, p 86