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.
This dream given to Nebuchadnezzar, king of the Babylonian Empire, provides the background to all the following dreams and visions given in the book of Daniel. In the second year of his reign Nebuchadnezzar dreamed a dream, which he forgot when he woke, so he called his magicians, and astrologers, and sorcerers, to not only tell him the dream but also to interpret the dream. They couldn’t and he planned to kill all those co-called wise men. But Daniel, a captive in his courts, was recommended to interpret the dream. (All bold are my emphases added. Square brackets [ ] indicate meanings of words. King James Version Easy-Reading Bible (KJVER) used.)
Daniel, who was called Belteshazzar by the king, was considered the wisest of all the wise men in Babylon. This is because the Spirit of God was with him.
Daniel 5:11,12 There is a man in your kingdom, in whom is the spirit of the holy gods; and in the days of your father [grandfather] light and understanding and wisdom, like the wisdom of the gods, was found in him; whom the king Nebuchadnezzar your father, the king, I say, your father, made master of the magicians, astrologers, Chaldeans, and soothsayers; 12 Forasmuch as an excellent spirit, and knowledge, and understanding, interpreting of dreams, and showing of hard sentences, and dissolving of doubts, were found in the same Daniel, whom the king named Belteshazzar: now let Daniel be called, and he will shew the interpretation.
Daniel said to the king,