You can have the word VETERAN printed on the front of your California driver license or ID card. There is no fee for the designation.
Visit your nearest County Veterans Service Officer and ask for a Veteran Status Verification Form. They verify your eligibility and complete the form, and you take it to a Department of Motor Vehicles office to apply.
Your DD214 or other discharge paperwork for the County Veterans Service Officer to verify, and the completed Veteran Status Verification Form.