There are three straightforward answers to this question.

First, Revelation and biblical prophecy must be understood in light of Jesus.

Second, Revelation and biblical prophecy—as with all the Scriptures—must be understood as the author intended.

Third, Revelation and biblical prophecy must be understood in light of the mission to which God has called His people.

Of course, to fully understand the significance of these three points, they need to be unpacked some more.

It's About Jesus

First, biblical prophecy in general and the book of Revelation in particular must be understood in light of the story of Jesus. After all, the Bible is God’s grand story that—with respect to the Old Testament—points forward to Jesus and—with respect to the New Testament—points backward and forward to Jesus.

This is evident in Jesus’ affirmation to the religious leaders, in which He notes that if they believed Moses, they “Would believe Me, for he wrote about Me” (John 5:46).

This understanding is also confirmed by Jesus when, on the Sunday in which He rose from the dead, He appeared to His disciples, who were still having trouble understanding what had happened and explained to them: “These are My words which I spoke to you while I was still with you, that all things which are written about Me in the Law of Moses and the Prophets and the Psalms must be fulfilled” (Luke 24:44).

In the same way, the book of Revelation is also about Jesus. The opening words of the book of Revelation state emphatically, “The Revelation of Jesus Christ” (Revelation 1:1). This phrase could be interpreted in two different ways. It could refer to the Revelation that is “about” Jesus. It could also be interpreted as the Revelation that is “from” Jesus. Most biblical scholars believe that both are correct. The book of Revelation is indeed “from” Jesus and is also “about” Him.

That the book of Revelation is about Jesus is clear from a careful reading. The book begins with John on Patmos, where he has a vision of Jesus (Revelation 1:12-20). Jesus then declares to John that He was dead but is “alive forevermore” (Revelation 1:18).

Then, in chapter 4 of Revelation, the scene moves from Patmos to heaven. John sees God sitting on a throne. John then notices that God has a scroll in His hand (Revelation 5:1), but no one can open it (Revelation 5:2-3). Suddenly, John learns that Jesus (the Lamb) is worthy to take the scroll and open it (Revelation 5:5-6).

Then a heavenly host joins in worshipping Jesus because, “Worthy are You to take the book and to break its seals; for You were slain and purchased for God with Your blood men from every tribe and tongue and people and nation” (Revelation 5:9).

The book of Revelation continues its focus on Jesus (the Lamb) as the story continues. In Revelation 19, John describes the Second Coming of Jesus (Revelation 19:11-16). Then, in Revelation 21-22, John describes a Holy City that is “Coming down out of heaven” (Revelation 21:2). One of the key features of the Holy City is that it is the place where God dwells among His people (Revelation 21:3).

As John describes the Holy City, however, he notes that the city is not only where God dwells among His people, but it is where Jesus and the Father dwell (Revelation 21:22; 22:1).

Author’s Intent

Second, biblical prophecy in general and the book of Revelation in particular must be understood considering what the author intended. Thus, John consistently appeals to his readers in the book of Revelation. This is most evident in that in Revelation 2:1-3:22, John writes seven messages to the seven churches. These messages most certainly address churches at the time John wrote.

Of course, this is a foundational principle of proper biblical interpretation. When read considering the author’s intention, it is apparent that the biblical authors were writing to the people of their day. This is true whether it be Isaiah, Jeremiah, or John, the author of the Book of Revelation. The biblical writers were addressing the people of their day. This second point correlates to the third point.

The Mission

Third, biblical prophecy in general and the book of Revelation in particular must be understood considering the mission to which God has called His people. This third point corresponds with the second. The prophets wrote to the people of their day to encourage them to fulfill their mission as the people of God. Thus, Isaiah reminds his audience, “I have called You in righteousness . . . and I will appoint You as a covenant to the people, As a light to the nations” (Isaiah 42:6; see also 49:6).

In the same way, one of the key elements of the book of Revelation is the repeated appeal to “overcome” (Revelation 2:7, 11, 17, 26; Revelation 3:5, 12, 21; 5:5; 6:2; 11:7; 12:11; 13:7; 15:2; 17:14; 21:7). John was concerned that his readers were in danger of failing to fulfill their mission. God had appointed them, as with the people of God in Isaiah, to be a light to the nations. This is evident in that the seven lampstands represent each of the seven churches: “The seven lampstands are the seven churches” (Revelation 1:20).

Predictions

What, then, shall we say about “predictions”?

To understand prophecy well, we must recognize that predicting the future or foretelling was not central to the prophets. They were far more concerned with the faithfulness of the people to whom they were writing. When the prophets make statements about the future, they do so with two things in mind.

First and foremost, the prophets served as a reminder to the people of God's promise of judgment for disobedience and blessing for obedience. This was a crucial aspect of their role, with the former being the more prevalent situation.

Second, the prophets spoke of the future to those who were suffering to remind them of the blessed hope that awaits them. Thus, the book of Revelation opens with the reminder that Jesus “was dead” but is “alive forevermore,” and He has “the keys of death and of Hades” (Revelation 1:18). This was meant to encourage the people to remain faithful. After all, they killed Jesus, but He was victorious. The implication is that we will be also. This is why each of the seven letters ends with a promise to the one who “overcomes.” And it is why the book of Revelation ends with the glorious depiction of the New Jerusalem, where there will be no more suffering, pain, or death (Revelation 21:4).

The Bible is a grand story of God’s desire to bring humanity redemption and restoration to His creation. This story reaches a climax in Jesus. After all, He is “A Light of revelation to the Gentiles” (Luke 2:32, citing Isaiah 42:6 and 49:6).

But the story does not end there. Jesus, then, tells His disciples, “You are the light of the world” (Matthew 5:14). It is this mission that the prophets were concerned that the people of God to whom they wrote were in danger of failing to carry out. It is to this mission that John writes to encourage his audience to “overcome,” which might also be the light for the nations.

And when we read the end of the story, we learn that their mission was successful. In his description of the Holy City, John declares, “The nations will walk by its light, and the kings of the earth will bring their glory into it” (Revelation 21:24).