This image is a representation of the image that King Nebuchadnezzar saw in his dream that was interpreted by Daniel and is found in the prophecy of the book of Daniel Chapter 2. All of that prophecy has already been fulfilled except the last part, which describes a “stone that smote the image” on the toes, because of chronology (time is illustrated running from the head to the toes) and the stone “became a great mountain, and filled the whole earth.” The period when this happens is in the latter days when Christ returns. The “great mountain” represents His kingdom on earth.
The Vision of the Ram and the He-Goat
Daniel’s vision described in the book of Daniel chapter 8, received 550 B.C, begins with a description of the kingdom of Medo-Persia, a confederacy of two kingdoms, Media and Persia. (All bold are my emphases added. Square brackets [ ] indicate meanings of words. King James Version Easy-Reading Bible (KJVER) used.)
Daniel 8:3, 20 … behold, there stood before the river a ram which had two horns: and the two horns were high; but one was higher than the other, and the higher came up last. 20 The ram which you saw having two horns are the kings of Media and Persia.
The two horns in this verse describes the fact that the kingdom of the Medes initially was strongest and ruled a part of the world contemporaneously with Babylon, but later the Persian kingdom, led by Cyrus, overthrew the Medes. This illustration corresponds to the bear with 3 ribs in his mouth, one of the four beasts, in Daniel chapter 7.
Daniel 8:4 I saw the ram pushing westward, and northward, and southward; so that no beasts might stand before him, neither was there any that could deliver out of his hand; but he did according to his will, and became great.