The allusion to the apostle Judas, who betrayed Jesus warns listeners not to be deceived by the apparently mild British reaction to the colonists' petitions against tax laws.
The significance of Henry’s use of the allusion was to show the betrayal of Jesus.
Allusion is simply used to call something to mind without mentioning it explicitly. It's an hint at something and then expect someone else to understand it.
The use of "suffer not yourselves to be betrayed with a kiss” was to show how Jesus was kissed in order to show that he was the one that the people were looking for.
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