Verse 2

O Arunachala! In You all this picture comes into existence,
is sustained, and is destroyed.
You dance in the heart as Self (or Spirit) as I,
[and hence] they say heart is name to You.

O Red Hill! All this, which is a picture, rises,
stands and subsides only in You.
Since You dance eternally [in] the heart as I,
they say that Your name itself is heart.

Explanatory paraphrase: O Red Hill (Arunachala)! All this world-appearance, which is a picture, rises, stands and subsides only in You. Since You dance eternally in the heart as the consciousness ‘I’, the real Self, those who know the truth (the jnanis) say that Your name itself is heart (hridayam).