It sounds like a song about a drug user
"Your skin was so prized
Your head/hair grew out to cover
Your new blisters"
Could be scars from needles or cutting, "her hair grew out" could mean that she changes her appearance to hide her habits,
"Although these were our dreams
We’ll never wake from them" could represent that she may may not fully realize what she's doing or maybe even not remember it, but the consequences are permanent and serious (death, jail, whatever)
It sounds like a song about a drug user "Your skin was so prized Your head/hair grew out to cover Your new blisters" Could be scars from needles or cutting, "her hair grew out" could mean that she changes her appearance to hide her habits, "Although these were our dreams We’ll never wake from them" could represent that she may may not fully realize what she's doing or maybe even not remember it, but the consequences are permanent and serious (death, jail, whatever)