This is about English monk Bede's <em>Historia ecclesiastica</em> about Caedmon. The references praise Caedmon's talent since religion significant back then in people's lives. Although Caedmon was completely talentless, the point about religion enhanced the power of the tale and made him become the greatest poet due to religion.
At the time when Bede wrote hist story about Caedmon, many of the fantastical elements were considered to be real and a part of the everyday life. Magic, superstitions, witchcraft, gods intervention, etc...all of this was believed to be real. This is why nobody found anything odd about Caedmon's sudden skill and believed that he was touched by God.