There isn't really much to say about the lyrics, seeing as there aren't that many:
"A bear with a honey pot stuck on its head" - This is most likely a reference to one of the smaller floats, namely one of Winnie-the-Pooh with a honey-pot stuck over his face in typical Pooh-Bear fashion.
"A large green hippo with blinking eyes" - In the Electrical Parade, one float happens to be an animatronic hippo who "blinks" its eyes.
"Some tiny tiny people swinging tiny tiny lanterns On the Main Street Electrical Parade" - This refers to the Seven Dwarfs as they enter a mine, hence the lanterns. In the parade, Dopey is seen driving a mine train filled with diamonds and adorned with lanterns, while Snow White and the other dwarfs follow.
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