Lyric discussion by hundredskies 

Cover art for Falling Down lyrics by Birthday Massacre, The

I think this is a conversation between a parent(s) and a child. The child wants to establish his (or her) own identity as a person but his parents want to restrict him.

"Farewell, This blackened eye. You learned your lessons falling down. Far behind, and tracing footsteps home.

Despite your lack of pride. You wore your imperfections well. Dignified. Spend your time alone. Trace your footsteps home."

The parents are speaking here. The child learned how to act from his parents. Whenever he stepped out of line, he was hurt (blackened eye) and learned his lessons "falling down." He always felt like he couldn't compete with the other kids (far behind) and so he followed in his parents' footsteps so he could be "normal" (tracing footsteps home). Even though he felt like he screwed up, he tried to show that it didn't affect him (despite your lack of pride, you wore your imperfects well, dignified). He feels lonely and like no one understands him, like most teenagers do (spend your time alone), and his parents give up on trying to make him make friends with people he doesn't like.

"Your hands are always reaching out of favor. Your kind are only good for bad behavior. Your mouth was never one to trust. You're always speaking out, Falling far behind, Falling out of line."

The chorus is also in the voice of the parents. They feel like their kid is bad because he doesn't act like the other kids or like the same things they do. Maybe he's gay, maybe he's into art rather than sports, maybe he wants a tattoo. Basically just stereotypical things conservative parents will say about their kids who are different, even though they aren't bad at all.

"Farewell, This bitter tongue. You spoke your lessons falling down, talking out, And breaking silence.

Despite the harm you've done, You swallowed your rejection well. Amplified. Sing your song alone. Trace your footsteps home."

The child is finally speaking up for himself now. He’s finally decided not to listen to what his parents have to say about him (farewell, this bitter tongue). He realizes that they’ve done more harm than good to an innocent boy (you spoke your lessons falling down, talking out, and breaking silence). He’s rejected them and decides to shut them out of his life, but they are still smug because they believe their child is going through a phase and that they are right (despite the harm you’ve done, you swallowed your rejection well, amplified). They have no one to control anymore and they remain the same (sing your song alone, trace your footsteps home).

My Interpretation