1- In Pagan times a log was decoratcd and burnt in order to clear away the Old Year. In dreams it will be seen as a symbol of light and new life.
2- In modern times, the Yule log is symbolised as a celebration cake.
Therefore it tends to suggest the New Year and new beginnings in dream language.
3- A Yule log represents a spiritual offering or sacrifice, particularly at the time of a spiritual or religious celebration when we pay homage to the gods. [1]
If you are burning one then this is a warning not to set your sights too high or your dreams could go up in smoke and turn to ashes. [2]