What does it mean when: The gods raised Valinor & globed the world? Does this mean that Valinor was raised high up in the sky above clouds & the air we breathe?
This refers to the Changing of the World:
The Changing of the World was the event in which Arda was transformed from a flat world into a round planet. It occurred near the end of the Second Age when Eru destroyed the island of Númenor due to the deeds of its people.
When the Númenórean King Ar-Pharazôn attacked Valinor, the Valar relinquished their dominion over Arda and called upon Eru for help. Eru responded by creating an enormous rift between Númenor and the Blessed Realm, into which Ar-Pharazôn's fleet and, ultimately, his land were swept. Meanwhile, the flat world bent back upon itself and met at this rift. The final result was a round planet of which Aman and Tol Eressëa were no longer a physical part. After the Changing of the World, only the Elves could find the Straight Way and reach the ancient West by ship.