The past several verses have been speaking of the dawn of the Millenial day, when evil is destroyed and the glory of the Lord redeems Zion and Jerusalem. In order for that glorious day to come, the wicked must first be destroyed. Those that are left must be holy enough to dwell on the newly cleansed earth, ’when the Lord shall have washed away the filth of the daughters of Jerusalem.’ During the Millenium, the earth will exist in a terrestrial state. Only those worthy of a terrestrial (or higher) glory will be allowed to live at that time. DC 88:98 speaks of the celestial inhabitants of the earth during the Millenium; DC 88:99 speaks of the terrestrial inhabitants. The next two verses describe those of a telestial glory and those of Perdition which will not be allowed on the earth during the Millenium, ’they live not again until the thousand years are ended, neither again, until the end of the earth.’
Joseph Fielding Smith
"At the close of the sixth thousand years and at the opening of the seventh, since the fall, the earth and all that remain upon its face will be changed from the telestial condition of wickedness to the terrestrial condition of peace and order. This is the day when the earth ’will be renewed and receive its paradisiacal glory,’ as declared in the tenth Article of Faith…
“For one thousand years this terrestrial condition will prevail. All things upon the earth that have subscribed to the telestial law will have been removed, and creatures of the terrestrial order will remain.” (Church History & Modern Revelation, vol. 2, pp. 64-5)