Other characters in one's dreams very often represent aspects of one's self. A demon might represent the negative aspects of one's self, or personal qualities that have been condemned and repressed. Loving that demon could symbolize a growing acceptance of all one's qualities, and embracing one's faults as well as one's more attractive gifts. For example, as one matures, one might learn that anger need not always be denied, but can be embraced and channeled as creative power.
Dreams are symbolic, and dream interpretation is mostly bogus. Interpret the symbols in terms of their relevance to YOU, not their general relevance. What do demons represent to you? Are you religious? Do you believe in literal demons? Do demons figure prominently in books or movies that you like, in art that you look at, or in songs that you listen to or write? Was the dream frightening or enjoyable? Was it neither? Lots of people will give you their own interpretation, but only YOU can say for sure what this dream means. Dreams are not communications from outside; they are created by your mind.
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