Baphomet is obviously androgynous, with female breasts and the very phallic caduceus, representing the union of male and female.
The wings represent spirituality and ascension while the goat’s head represents sin and the animalistic nature of humans.
The wings represent Air and birds, the scales on its belly represent Water and fish, and its hooves represent Earth and mammals. The torch represents Fire.
The gesture that Baphomet is making with its hands represents the Hermetic Principle of Correspondence, “That which is above is like that which is below.” The “above” is the macrocosm, either the literal universe at large or the divine realms. The “below” is the microcosm, life on earth or the human body itself. And if you affect one, you affect the other.
The words on its arms, “solve” and “coagula,” mean “to separate” and “to bring together.” They summarize the alchemical process.
The torch on its head represents intelligence, divine knowledge, and enlightenment, the soul over the body. The pentagram on its head is upright, putting spirit above matter.
The white and black moon represent the sephiroth Chesed and Geburah (respectively), therefore the qualities of mercy and severity (respectively).
The caduceus in its lap, in addition to being a phallic symbol, is representative of magical power, healing, and bringing together of opposites. (Apparently also eternal life.)
The circle behind the caduceus is reminiscent of the Ouroboros, representing the Principle of Mentalism — all of the universe is in the mind of God. It also apparently represents the atmosphere, probably the “cosmic Void,” prima materia.
Baphomet is a personification of the process of magic. And yet for some reason, all people seem to remember is the goat’s head.