Literal and Figurative Language in the Bible

"Truly, truly, I say to you, he who does not enter by the door into the fold of the sheep, but climbs up some other way, he is a thief and a robber. "But he who enters by the door is a shepherd of the sheep. "To him the doorkeeper opens, and the sheep hear his voice, and he calls his own sheep by name, and leads them out. "When he puts forth all his own, he goes before them, and the sheep follow him because they know his voice. "And a stranger they simply will not follow, but will flee from him, because they do not know the voice of strangers." This figure of speech Jesus spoke to them, but they did not understand what those things were which He had been saying to them.

John 10:1-6 (NASB)

In this passage, Jesus speaks a parable to those listening. This is a figure of speech used to explain and clarify His teaching. Obviously Jesus' followers are not literal sheep, just as Christ does not open a literal door to them. Rather, we understand that this is figurative language to explain a concept.

Most of the Bible is to be taken literally. Most of the Bible is clear and simple. When we are told facts and commands, we generally understand it at face value. However, there are some times when the Bible is not intended to be taken literally, but figuratively. There is much figurative language in the Bible, and failing to recognize when figurative language is used in the Bible can lead to difficulty in understanding much of scripture, and often leads to false doctrines and errors. There are a few specific types of figurative language that we will briefly consider.

Parables
Christ taught many things in parables while He walked this earth. Others in the Bible occasionally used parables to teach a lesson. A parable is a short story which serves as an analogy to explain something else. For example, the the different types of soil parable of the sower in Matthew 13 teaches us about the different ways the gospel will be received by people. The parable of the prodigal son in Luke 15 teaches us about repentance and God's forgiveness. The parables are not to be taken at strictly face value. In the above example of the parable of the sower, it is not a lesson farming. Rather, each parable stands figuratively for something else.

Psalms
Psalms and songs are found in much of the Bible, not only in the book of Psalms. Much in the psalms is to be taken figuratively. In Psalm 19:1-4, the sky is declared as speaking. Obviously, this is not to be taken literally, but rather should be understood as showing that God's creation itself teaches us about God. Similarly, in Psalm 65:12-13, the hills do not literally rejoice and the valleys do not literally shout and sing.

Apocalyptic
There are several books of the Bible which can properly be called apocalyptic. These are Ezekiel, Daniel, Zechariah, and of course, Revelation. Apocalypse means that something is revealed or unveiled. The way this is done is through highly figurative language. In Revelation, Christ is portrayed as a lamb (Revelation 5:6), as a child (Revelation 12:2-5), and as a conqueror on a white horse (Revelation 19:11). These are not literal depictions of the Son of God, but are representative images and should be understood in such a way. Indeed, some thing sin these books cannot literally exist:
And the beast that was, and is not, even he is the eighth, and is of the seven, and goeth into perdition

Revelation 17:11 (KJV)

Comparisons
And of course, there a number of other uses of common figurative language, usually through the use of similes and metaphors in comparing two things. A simile is to compare two things using “like” or “as.”
And seeing the multitudes, He felt compassion for them, because they were distressed and downcast like sheep without a shepherd.

Matthew 9:36 (KJV)

The passage does not mean that the multitude were actual sheep that did not have a shepherd, but that they shared characteristics.

A metaphor is similar, but makes the comparison by stating that something is something else. For example, consider Psalm 144:1-2,
Blessed be the LORD my strength, which teacheth my hands to war, and my fingers to fight: My goodness, and my fortress; my high tower, and my deliverer; my shield, and he in whom I trust; who subdueth my people under me.
The Lord is not a literal, physical fortress building or tower. The Lord is not a literal, physical shield. But can be described as such because of the protection that He provides His followers.

Yes, most of the Bible should be understood literally. But we must always be aware and watchful for when figurative language is used, that we may fully understand God's word and not fall into error.