In the Song “Independence Day” by Martina McBride, what do the lyrics “Well, she lit up the sky that Fourth of July“. mean?

Probably an explosion.

Yes.

She WAS a short lived phenomenon that gets brief attention, like a shooting star.

she set the house on fire i think in that song

I take it to mean she (the mom) killed her abuser and burned his house down around him, thus achieving independence for herself. Just a guess though.

Oh, but see this: https://www.rollingstone.com/music/music-country/independence-day-martina-mcbride-real-meaning-855248/