This is a salon-style waltz characteristic of American parlor music from the late 19th century. It is musically distinctive for its simple, singable melody supported by a standard accompaniment pattern.
At Henle 2 this is a beginner-level piece, where steady coordination between the hands is the main hurdle. The main demands: a waltz lilt that needs charm and a flexible left hand; a true singing tone, with the melody floating above the accompaniment; and careful pedaling — clarity depends on the foot as much as the fingers.
Focus on maintaining a steady, rhythmic pulse in the accompaniment while shaping the melodic line.
Comparable difficulty and character — good candidates for what to learn next.
A level or two down with the same spirit — ideal if this piece is still out of reach.
Where this piece's skills lead: slightly harder works making similar technical demands.
Dreams of Old Kentucky is rated Henle level 2 of 9 — beginner repertoire, roughly ABRSM grades 2–3. In the RCM system it corresponds to about level 3.
You should be comfortable at Henle level 2 — meaning you can already play level 1–2 pieces cleanly. Learning it one level early is possible as a stretch piece, but more than that usually leads to months of frustration.
A typical performance of Dreams of Old Kentucky lasts about 3 minutes.
Dreams of Old Kentucky is available as free public-domain sheet music on IMSLP — the score is linked directly from this page.
Pieces at a comparable difficulty and character include Cuentos de la juventud, No.1 by Enrique Granados, At Twilight by Rudolf Friml, 'O marenariello by Salvatore Gambardella — see the full similar-pieces list on this page.