You sleep in lands of darkened sky;
I'm guessing this is the Treno area, unless it's too obvious. It could also refer to the southern part of the Forgotten Continent, or possibly some FMV where the sky goes dark, although "lands of" suggests it's a more permanent state.

"Sleep" could refer to actual sleeping, or having died and being buried or similar here. Alternatively just resting/waiting.

a home away from home.
Suggests they live here but only temporarily or such; it's not their "real" home.

You hide from fools and demons
in places which they roam.
This could mean pretty much anywhere I guess, but I'm thinking it might have a more specific meaning. Maybe Zorn and Thorn was here or something (they're both fools and demons, really).

Outside are those who use you,
those ignorant monsters and mice.
This is interesting. "Those who use you" says to me it is some sort of machine or similarly useful item. Ehh I'll elaborate more later.

But we looked closer and we did see one minute piece of Taoist vice.
I know the absolute basics of Taoism but I have no idea what a Taoist vice would be xD I have to research this later when I have more time.

Agh I don't really have time to elaborate but is it Quan? I doubt it but oh well it's a guess and all. /half-done post