When Anne arrives at Avonlea, she gives its natural features hyperbolic names. For instance, in Chapter 2, she decides to call Barry's pond "the Lake of Shining Waters":
I shall call it—let me see—the Lake of Shining Waters. Yes, that is the right name for it. I know because of the thrill. When I hit on a name that suits exactly it gives me a thrill. Do things ever give you a thrill?
The hyperbolic element of her speech relies on the fact that she's calling a pond a "Lake." Barry's pond is beautiful, ethereal, and "almost like a river." But Anne wants to communicate the sense of "thrill" that strikes her imagination and tries to match her description to the feeling she has when looking at the pond.
Matthew hilariously confuses her "thrill" at seeing the lake with his own feeling upon seeing "ugly white grubs that spade up in the cucumber beds"; although he misunderstands her, he shows a willingness to ruminate on her fanciful ideas and tries to find resonances in his own mind. A similar instance occurs when Anne renames the Avenue of Newbridge “the White Way of Delight" (after its canopy of apple blossoms). Anne's use of hyperbole reveals her excitement about coming to live in Avonlea. Her respect and reverence for Avonlea resound throughout the story as she becomes more attached to the place and all the people within it.