I know that it describes the secant through $(t_1,h(t_1))$ and $(t_2,h(t_2))$, but I wouldn't know how to interpret it in "real life" terms.
I also know that if $t_1$ tends towards $t_2$, I get the tangent at $t_2$, which would be the speed, so maybe the secant describes the average speed between the two points, but then there would exist average speeds of $0$, which doesn't make much sense to me.
(This was part of a recent math exam, which is what I took as justification to post it here.)
Your fraction is the slope of the secant through the involved points.
You could use it to apply the mean value theorem, which gives that there is some point in between, where secant slope and $\dot{h} = v_z$ have the same value.
And yes, the secant slope is the time average of $v_z(t)$ over $[t_1, t_2]$: $$ \bar{v}_z = \frac{1}{t_2-t_1} \int\limits_{t_1}^{t_2} v_z(t) \, dt = \frac{1}{t_2 - t_1} (h(t_2) - h(t_1)) $$