Its night of Halloween -> Her new item allows her to hae the night follow her around.
Let’s light up the jack-o-lanterns! -> Jack o lanterns are traditionally gold/flame coloured, her eyes are golden.
Now go dress up? -> She has transform magic.
Let’s see what your costume is… A demon! -> Possibly another reference to her magic.
Hmm, that fits you perfectly.
Its charcoal color and spooky look, you are sure to scare someone. -> Black coat.
Ratchet lips and twisted words! Oh you are starting to scare even me!
Trick or treat!