This describes someone of low moral character who, upon gaining power or wealth, behaves arrogantly and abuses their position. It warns that success reveals true character, and that such people are dangerous when empowered.
In Chinese ethics, the 'junzi' (gentleman) is humble even in success, while the 'xiaoren' (petty person) is defined by selfishness and lack of virtue. This saying is a common moral lesson in both classical and modern contexts.
Chinese society values humility and social harmony, so seeing someone 'get above themselves' triggers a moral judgment. This saying serves as a warning to stay grounded and as a way to critique those who misuse power.
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