Do white lanterns represent dead people?

It means this.

Chinese lanterns synthesize: the art of painting, paper-cutting, paper tying, stabbing and sewing, etc. Among the lanterns made in ancient China, palace lanterns and gauze lanterns are the most famous. Lanterns are closely linked to Chinese people's lives, and they are found in temples and living rooms everywhere.

Carefully projected, China's lamps are after the Qin and Han Dynasties, and paper lanterns are after the invention of paper in the Eastern Han Dynasty. Chinese lanterns, not only for lighting, it is often also a symbol, Wu Dunhou said, he used to do bridal lamps (i.e., palace lanterns) on behalf of the wedding festivities; gabion lamps on the funeral occasions; umbrella lamps (the word lamp), because of the "lamp" and "ding" phonetically the same, which means that the people are thriving.

So, in the past, every family had lamps hanging under the eaves and in the living room. The fact that there are still two large lanterns in front of the deity's ding-tao at today's welcome ceremony is a continuation of this custom.