The key for me lies in the last couple of lines and the repetition of the words "light" and "fire." There is the obvious reference to idolatrous sacrifice, those who kindle fire are those who perform the profane rites, adherents of such like Molech and Ashtaroth. However, if we cross reference to 1 Ne. 1:6-8, Ezekiel 1:4, Alma 38:9, 3 Nephi 17:24, Deuteronomy 4:12,24, and D&C 88:63,67-68, we see that fire and light are associated with the presence and revelations, in short the knowledge, of God.10. Who is among you that feareth the Lord, that obeyeth
the voice of his servant, that walketh in darkness and hath no
light?
11. Behold all ye that kindle fire, that compass
yourselves about with sparks, walk in the light of your fire and in the
sparks which ye have kindled. This shall ye have of mine hand—ye
shall lie down in sorrow.
So, we have an interesting image then, of someone who walks in darkness surrounded by the sputtering flames of their own fire--with all of its representative associations. At once the image incorporates two antithetical ideas, the sputtering flame of idolatry--in this case pride and self-worship--with the Light of Christ. If we accept that the knowledge of God is truth, the knowledge of things as they really are (Jacob 4:13), then this scripture is a commentary on those who seek knowledge of themselves without the influence of Christ, they find "burning instead of beauty" (2 Nephi 13:24, compare with 3 Nephi 17).
So there's the rub. A person who seeks or expounds knowledge without the Light of Christ (I know, I run the risk of including myself here), may find bits of "truth," at least in some abstract sense. It is so easy for us to get caught up in the heady fumes of discovery and enlightenment that we fail to realize that of themselves they give us truth which is ultimately of no use. This sort of truth is like sputtering flames which are without value because the light of their knowledge serves only to emphasize the totality of the darkness surrounding it.