What does the quote "The ink of a scholar is more holy than the blood of a martyr" mean?

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatuh

This quotation should be viewed and analysed in its correct perspective. Indeed there is great merit and virtue in sacrificing one’s life for the purpose of اعلاء كلمة الله  (i.e. to raise the word of Allah and to make Islam flourish).

In spite of the great virtue of seeking martyrdom, it is also necessary for others to remain behind in order to pursue and seek Deeni knowledge. The verse of the Qur’ān states:

وما كان المؤمنون لينفروا كآفة فلولا نفر من كل فرقة منهم طآئفة ليتفقهوا في الدين ولينذروا قومهم إذا رجعوا إليهم لعلهم يحذرون 
(9:122)

Rasulullah (sallallahu alaihi wasallam) has also mentioned: 

من سلك طريقا يلتمس فيه علما سهل الله له طريقا إلى الجنة وإن الملائكة لتضع أجنحتها رضا لطالب العلم وإن طالب العلم يستغفر له من في السماء والأرض حتى الحيتان في الماء (سنن ابن ماجه)

“Whosoever treads any path in search of (deeni) knowledge, Allah will make the path to Jannah easy for him, the Angels spread out their wings out of pleasure for the seeker of knowledge, those in the sky and the fish in the ocean seek forgiveness on behalf of the one seeking knowledge”

In the event of seeking Islamic knowledge, a person will ground himself with Islamic knowledge, be a means of preserving Deen and a source of drawing others closer to the beautiful Sunnah and teachings of Rasulullah (sallallahu alaihi wasallam). 

And Allah knows best

Checked and Approved by:

Mufti Ebrahim Desai
Darul Iftaa