Bottom-up design is becoming more important as software grows in complexity. Programs today may have to meet specifications which are extremely complex, or even open-ended. Under such circumstances, the traditional top-down method sometimes breaks down. In its place there has evolved a style of programming quite different from what is currently taught in most computer science courses: a bottom-up style in which a program is written as a series of layers, each one acting as a sort of programming language for the one above. X Windows and TeX are examples of programs written in this style.
The title is intended to stress the importance of bottom-up programming in Lisp. Instead of just writing your program in Lisp, you can write your own language on Lisp, and write your program in that.
Bottom-up design leads naturally to extensible programs. The simplest bottom-up programs consist of two layers: language and program. Complex programs may be written as a series of layers, each one acting as a programming language for the one above. If this philosophy is carried all the way up to the topmost layer, that layer becomes a programming language for the user. Such a program, where extensibility permeates every level, is likely to make a much better programming language than a system which was written as a traditional black box, and then made extensible as an afterthought.
Keep "bottom-up" and more importantly "On XXX" concept in mind as you are trying to understand the functional programming paradigm.