The early laurel wreaths were created and given in honour of Apollo.
Apollo, the god of light and poetry, was the son of Zeus, and he developed quite a thing for Daphne, a beautiful mortal. This was unfortunate in many regards, chiefly because Daphne did not share his feelings.
Undeterred, Apollo pursued Daphne, until finally she asked her father to intercede. He transformed her into a laurel tree - thanks Dad – leaving Apollo heartbroken.
To remember her he took the laurel as the symbol for poets: the poet laureate is therefore one who is signified by the laurel wreath.
Dante, he of the inferno, is often depicted wearing a wreath of laurel.