It is considered a popular standard and was first recorded by Gene Austin in 1926.
There is much speculation about the meaning of the song. At least two commentators (using the same source) attribute the song to a prostitute's leaving the business and going home to her mother. As such, it is the opposite of "House of the Rising Sun," where the prostitute returns to the business. The reason for the song's apparent ambiguity is that the opening verse and the verses about the bluebird are rarely sung.
Pack up all my care and woe Here I go, singin' low Bye bye blackbird
Where somebody waits for me Sugar's sweet, so is she Bye bye blackbird
No one here can love or understand me Oh what hard luck stories they all hand me
Make my bed and light the light I'll arrive late tonight Blackbird, bye bye