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老師 directly translates as “old teacher,” “old master,” or “old sage.”
Together, they are understood as “teacher.” When you think about that, also realize that with age comes respect in Asian cultures. So calling someone old is a term of respect (not like the way we mean it in English). You could replace “old” with “respected” and be closer to how this is meant in Chinese.
Teachers, in general, are more respected by their students and the population in China. When I was a teacher in China, I certainly felt that.
This term is also used for masters of certain fields. For instance, a master calligrapher would respectfully be addressed as a “teacher.” In this case, “master” and “teacher” are synonymous.
Other artists (especially those who are famous or accomplished) should be addressed with this term. Also, some martial arts schools use this term of respect for their masters/teachers/instructors.
This title is recognized in Japanese as "roushi" with the same meaning but it’s rarely used in Japan.