Camphor represents our inherent tendencies or vaasanas. When lit by the fire of knowledge about the self the vaasanas burn themselves out completely, not leaving a trace of ego.

Ego is responsible for a sense of individuality that keeps us separate from the Lord or consciousness.

Also, camphor when burns emit a pleasant perfume. This signifies that as we burn our ego, we can only spread love and nothing else.

(Disclaimer: The views expressed in this write up are my own).