Where It All Goes Down
"Song VII" evokes a number of settings. When the speaker describes his poem in terms of a woman who is taking off her fancy clothes, we can imagine some private space like a bedroom or dressing room where a lady takes off her clothes. Even though the speaker doesn't actually describe such a setting, he evokes it through his description of the poem as a woman undressing.
On another level, though, we can think of the setting of this poem as the speaker's heart and head. After all, the speaker wants to find communion with the divine. This desire for and relationship to the divine all takes place in the speaker's innermost thoughts. He's seeking a spiritual communion, so it's safe to say that the speaker's mind and soul are the most important setting that the poem evokes.