I think that this song as a whole is about the struggle of dealing with fame. It is Stevie basically telling one of her stories to Sheryl and telling her why she is telling her these stories. Crazy things could happen you could "Wake up with a stranger" and your life could be totally changed forever. And as the song reaches the end she is saying these experience have made me who I am. I don't want you to make the same mistakes so listen and those mistakes that I did. And that those mistakes count for something now they are helping you to survive. This is what I think "Fall from Grace" means.
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