This verse, "Blessed are you, O Lord, you God of our fathers: and to be praised and exalted above all forever," is a declaration of praise and adoration to God, rooted in the traditions of the Hebrew faith. Let's break it down:

"Blessed are you, O Lord..." This is a common formula of blessing in Jewish and Christian tradition. "Blessed" here doesn't mean God receives blessing from humans. Rather, it means recognizing and acknowledging God's inherent blessedness, holiness, and source of all good.

"...you God of our fathers..." This phrase connects God to the ancestral faith and covenant of Israel. By invoking "the God of our fathers," the speaker is acknowledging the historical relationship and faithfulness of God towards Abraham, Isaac, Jacob, and their descendants. It's a way of saying that the present generation is continuing in the same faith tradition as their ancestors.

"...and to be praised and exalted above all forever." This part emphasizes the unique worthiness of God to receive all praise and honor. "Praised" speaks to the act of giving thanks and expressing admiration. "Exalted" suggests lifting God up, recognizing His supreme authority and power above all things in existence. "Above all forever" makes it clear that God's greatness is unmatched and eternal.

In essence, the verse expresses:

Recognition of God's inherent holiness and goodness.
Affirmation of God's continuity and faithfulness to the covenant made with the ancestors of the faith.
Acknowledgement of God's supreme and eternal worthiness to be praised and honored above everything else.

The song is from the Book of Daniel, which is canonical to both Christians and Jewish tradition. In Daniel, three Jewish men refuse to worship a golden statue constructed by Nebuchadnezzar, and as punishment, are thrown into a fiery furnace. God protects them from harm, and the passage that contains this verse comes from their song of praise to God while in the furnace.