Coloca literally means "places" or "puts". However, in Spanish slang, it also means "to get high" or "to be under the influence of drugs or alcohol".
In the song, the phrase "El amor coloca" is a clever play on words. It suggests that love not only "places" you in a new state of being (like on a star, as the lyrics say) but also makes you feel euphoric, as if you're "high" on love. This double meaning makes the word particularly interesting and memorable in the context of the song.
María José spends this song turning a crush into something bigger than the person feeling it. She points up first: 'Mira el cielo' (Look at the sky), 'Es tu casa en una nube' (It's your house on a cloud), then catches herself, 'Y aún pisas el suelo' (And you still step on the ground). 'Más arriba' (Higher), she says, there's 'Hay un ángel con tu cara y con tu voz' (There is an angel with your face and your voice), and 'Esa es tu vida' (That's your life). The whole first verse lives in that gap between the ordinary person in front of her and the almost mythical one love keeps revealing.
The chorus treats love like a force of nature rather than a feeling: 'El amor coloca y transforma lo que toca' (Love places and transforms what it touches). She tells it to 'Huye, sube y vuela' (Run away, climb and fly), 'Monta en una estrella' (ride on a star), then adds the catch right after, 'Pero engánchate de ella' (But get hooked on it): enjoy the climb, just don't let go of it. That warning matters because the bridge shows the alternative. A heart left 'Escondido' (Hidden), 'Como un animal herido' (like a wounded animal), 'Esperando su final' (waiting for its end) is exactly what 'Nadie pudo' (No one could) reach, however hard it tried to 'Despertar su corazón' (awaken your heart), so it just 'Se durmió, se durmió' (fell asleep, fell asleep). The song spends most of its length celebrating love's pull upward, then quietly shows what happens when nobody answers it.