This is the song that the Town Troubadour is singing at the end of the scene, just as Rory and Lane walk off together, and most people are leaving.
It was written by Brian Wilson and Mike Love for the Beach Boys, released as a single from their 1963 album Little Deuce Coupe. It is an early example of a concept album, as all of the tracks are about cars in some way.
The song talk about being proud of your school, and not letting people look down on it, and specifically refers to cheerleading as part of showing school spirit. Each line of the song’s coda begins with “Rah rah”, like a cheerleading chant. The show focuses so much on Chilton, Rory’s school, and this is rare chance for Stars Hollow High School to be showcased.
The Troubadour seems to singing the song for all the school, but especially the cheerleaders, and perhaps Lane in particular. She hasn’t had much to be proud of, with golden girl Rory getting all the plaudits, so being able to feel proud of her cheerleading and her school seems pretty important. It’s the first time Lane has made a deliberate choice to break away from Rory and start leading a life of her own – and it’s something involving music, which she loves. It might be only “one step step beyond”, but it’s a significant one.