Can I tell Finder to show a Folder path when accessing the Folder from Favorites? I guess the title says pretty much it all. I've added a folder I do most of my work in to Favorites in Finder. Sometimes however I need to back up in the folder structure to access a folder higher in the tree structure. However, when I've  accessed the folder from Favorites that isn't possible. Finder handles a Favorite folder as the root of the structure.

Is there a setting to this or some other quick nifty way of backing even further up in the tree from a favorite folder?
You can right-click (control-click) on the folder name in the Titlebar of the Finder window and select a parent folder and or you can expose the Path Bar in Finder (View > Show Path Bar) and select a parent folder from there.

Also from the Sidebar you can right-click (control-click) on the Favorites name and select Open Enclosing Folder, although this opens another Finder window whereas the previous suggestions stay within the same Finder window.

Additionally one should become familiar with the keyboard shortcuts of Finder which one can see shown on each menu in Finder, particularly the Go menu.  Like, Command–Up Arrow as mentioned by Ivan Chau in the OP comments.

Note: See Finder shortcuts in: Mac keyboard shortcuts