Sideral translates to "sidereal" or "outer space." It's a less common, more poetic word than simply saying "espaço" (space), adding a touch of grandeur and mystery.
In the song, the artist sings about launching a love song "no espaço sideral" (into outer space). This word choice elevates the romantic gesture, making the declaration of love feel vast and eternal, like the cosmos itself. It's a memorable word that evokes a sense of wonder.
Gal Costa treats songwriting itself as the joke here. She announces her plan line by line: 'Eu vou fazer uma canção pra ela' (I'm going to make a song for her), 'Uma canção singela, brasileira' (A simple, Brazilian song), timed 'Para lançar depois do carnaval' (To release after Carnival), like she's filing a release schedule instead of falling in love.
Then the comparison turns science fiction. The song she's writing will play 'Para gravar num disco voador' (To record on a flying saucer) and travel 'Para lançar no espaço sideral' (To release into outer space), until her passion shows up in the sky of some small town 'Como um objeto não identificado' (Like an unidentified object). Caetano Veloso wrote it, and it plays like him: a love song and a UFO sighting treated as the same event, sung completely straight.