"Back then long time ago when grass was green" = Before there were many problems in the world, in a more innocent time.
"Caresses fleeced you in the morning light" = The Beatles would wake up with girls they had slept with the night before.
"Casualties at dawn" = They would goof off during the day, but come nightfall when it was show time, they took no prisoners and performed like no others.
"The fuzz gonna come and claim you" = The world believed that they owned The Fab Four and could treat them however they wanted.
"When the buzz gonna come and take you away" = Living as a good person so God can admit you into Heaven.
"The microscopes that magnified the tears" = The press and paparazzi made their problems worse by constantly reporting on them.
"Studied warts and all" = Some people focused only on bad things.
"Still the life flows on and on" = They overcame their adversities.
"But it's all over now, Baby Blue" = Obviously a reference to a song by Bob Dylan (whom George idolized), simply saying their time as The Fab Four was over.
"And you've really got a hold me" = Another song reference and that a part of his life belongs to The Beatles.
These are just my general thoughts, I could be wrong but this is how I have come to think of this great song.
My interpretation:
"Back then long time ago when grass was green" = Before there were many problems in the world, in a more innocent time.
"Caresses fleeced you in the morning light" = The Beatles would wake up with girls they had slept with the night before.
"Casualties at dawn" = They would goof off during the day, but come nightfall when it was show time, they took no prisoners and performed like no others.
"The fuzz gonna come and claim you" = The world believed that they owned The Fab Four and could treat them however they wanted.
"When the buzz gonna come and take you away" = Living as a good person so God can admit you into Heaven.
"The microscopes that magnified the tears" = The press and paparazzi made their problems worse by constantly reporting on them.
"Studied warts and all" = Some people focused only on bad things.
"Still the life flows on and on" = They overcame their adversities.
"But it's all over now, Baby Blue" = Obviously a reference to a song by Bob Dylan (whom George idolized), simply saying their time as The Fab Four was over.
"And you've really got a hold me" = Another song reference and that a part of his life belongs to The Beatles.
These are just my general thoughts, I could be wrong but this is how I have come to think of this great song.