First, "lest your nakedness be uncovered" precludes any reference to pagan rites and worship which are supposed to be here compared with Israelite worship, because it is governed by "you shall not ascend upon steps;" meaning ascending on steps, not pagan worship or succumbing to the practices thereof, is that which would have the possible effect of allowing unclothed portions of your body to be seen in a holy setting—something entirely unseemly. of course, and altogether avoided even as a possibility with this commandment.
Exodus 20:24-26 (DRB)
You shall make an altar of earth unto me, and you shall offer upon it your holocausts and peace offerings, your sheep and oxen, in every place where the memory of my name shall be: I will come to thee, and will bless thee. 25 And if thou make an altar of stone unto me, thou shalt not build it of hewn stones: for if thou lift up a tool upon it, it shall be defiled. 26 Thou shalt not go up by steps unto my altar, lest thy nakedness be discovered.
The theme and intent of these specifications teaches the Israelites that what they offer to God must offered purely by His grace—symbolized by using only natural offerings and altars, untainted, as it were, from the futile attempt and effort of man to provide God with some good He did not already possess—it is about their need for His propitiation, not His to be propitiated.
I think this is purely about modesty, not spiritual nakedness. Since if it were about spiritual nakedness, it would necessitate that going up step to an altar is intrinsically evil and shows God how evil you are. I don't think this is reconcilable with revelation or reason.