Lyric discussion by zachwhitedev 

Cover art for The Palace lyrics by Father John Misty

I think it's just a song about a temporary need to disconnect from your life, although maybe not in the most healthy way. For example, it seems like he's put up a bit of a barrier between him and the people he works with and the people he cares about, by staying tucked away in his own metaphorical "palace." And of course as he continues to inhabit this palace of his (a tongue-in-cheek reference to his ability to afford services that will do his cleaning and food prep for him, like a hotel room or an apartment where he only orders food and has a cleaning service) he starts to have all these loose thoughts and notions about things that may help distract him or fill some void, like getting a dog and wondering what he would name it if he did.

He also mentions he wrote a poem, and makes a somewhat sarcastic allusion to being in "the poem zone"- another hint that he was feeling sentimental- or perhaps navel-gazing a bit- and in the moment had been reaching out for some way to express a thought or feeling, and not necessarily an extremely happy thought or feeling.

I like how in the end he alludes to the fact that he reached out to someone and is "ready to come home." Which in itself is another big clue for what sort of position/state of mind he occupies throughout the song- one of being disconnected and away from his usual routine and surroundings.

I think his refrain of "I'm in way over my head" is just about life in general. Even though we are often aware of our current mental state- for example, knowing when we feel "at home" vs. "in a foreign place"- in a way it never really matters what we feel. We are human, and even if we're feeling "at home", "comfortable," "at peace," "happy"... even when we feel all these ways, the truth is that we are forever "way in over our heads" at the same time, just by being here.

My Interpretation