BJ,
An odds-on horse has a 50% chance of winning. That is their average SR.
Their is no reason or certainty that your $1.10 horse has an 80% chance of winning. Thats speculation only. Horses at the odds you mention get beaten all the time. I had 8 odds- on bets in a row once that all lost !!

The saying "odds-on look on" has legs:-)