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Explanation: "Dancing Queen" refers to F.Mercury's (lead singer in the band "the Queens") sexual inclination. The word "Queen" in this case stands for "a male homosexual in the submissive role". "Dancing" stands for joy or happyness.
Thus: Happy Homo
I was young once too!
Sven Petersson Sweden Local time: 13:34 Native speaker of: Swedish, English PRO pts in pair: 14134
Explanation: Dear Sven!
I believe you are wrong. The asker states that it is her favourite song and spells the question with capital letters, i.e. like a title. The song called 'Dancing Queen' was created and sung by ABBA (on, among other occasions, the eve of the royal wedding in Sweden in 1976) in hounour of the Queen to be, Silvia).
A 'dancing queen', though, could very well be interpreted like you have done it.
Swedish ABBA fan
Mats Wiman Sweden Local time: 13:34 Native speaker of: Swedish PRO pts in pair: 3482