Final answer:
The setting of the poem is a metaphorical theater where angels watch over Earth as if it were a stage. It involves the spiritual realm, with imagery of paradise, hell, and Christ as central figures.
Step-by-step explanation:
The setting for the poem describes a theatrical scene where angels are situated as if in a theater, observing the stage, which represents Earth. This theatrical and celestial setting is metaphorical, with key imagery involving the divide between paradise and hell right beneath the feet of a royally dressed Christ, the judgment of souls, and the interaction between the angels and prophets. The setting also involves a contrast between the divine and the mundane, highlighted by the descriptions of the angels' actions and their positions as watchers.