This is a quote from a song in the animated movie Tangled. I find translating this kind of sentence especially difficult:
(A) What is it like out there where they glow?
She is looking through the window in her castle and sees the glowing lanterns that are falling in the sky. This is when she sings the song in which the quote appears.
I think that the word "it" in (A) means the outside world where they glow. But how can we analyze sentence (A)?