Lyric discussion by white_stone_3 

Cover art for Johanna lyrics by Sweeney Todd: The Demon Barber of Fleet Street

I think in this song, Sweeney is still wondering about his dear daughter and as the song progreses, he accepts that he probably will not ever see her again, so he's trying to move on. Anyways it is better if she doesn't know him, because he is a murderer and he probably wouldn't want her to know that about her father. So he is deciding that she can stay the way he dreamed she was.