How Much Does Toning Relate To Value? (1887 Morgan Dollar)

It depends on the collector, some like it some do not.

It's just like John1 said, except in MY case, the value is DROPPED. As mentioned, all collectors have different ideas on toning, so the effects can be both positive and negative.

Officially, toning is considered damage. Some people like it, some don't, but it's a negative to the pure "perfect" coin.

Toning has been a hot sell lately. From what I've seen, the toning has to be the PERFECT color combination with vibrant colors to sell for a lot more than standard retail price. Anything other kind of toning, there usually isn't an increase in value.

As mentioned, it depends upon the individual. Some like toning, others like blast white. Certainly one of the criteria when grading is the overall eye appeal which of course is subjective. Sometimes toning can hide imperfections that would affect grade. Perhaps the hardest criteria to grade would be luster since the toning can obscure it and you have to sort of look through the toning to make an assessment. I see some chatter and strike weakness which to me is more distracting than the toning but personally I think your coin has a pleasant eye appeal due to the toning.

I've always felt that toning actually is a micro layer of protection and this coin will generally stay the way it is over a very long period of time.
As long as it is stored properly it shouldn't change very much at all in your lifetime anyway. It has stabilized.
A coin that shows no toning at all still has a chance of toning at some point and who knows how it will turn out. I've had some unpleasant surprises in my collection after not seeing those coins I stored away and looked at them for the first time again in years.

Attractive toning will increase the market value. Not for every buyer, but there are plenty of toned collectors to create that market. Additionally, Morgans are probably one of the more popular series for toned coins, at least in my opinion.