Above means higher than or overhead. On the fourth of July, many Americans like to sit on the ground and watch fireworks above them in the sky.
The adverb above is good for describing something that happens over your head or something that's up beyond something else. The full moon shines up above you in the night sky, and when your little brother scampers up the monkey bars, he is also above you. The root of above is the Old English word abufan, which combines a, "on," and bufan, or "over."