Flugtvejsskiltet står ved flugtvejen.

Yes. Danish very often forms compound nouns, where English would often use several separate words.

flugtvejsskiltet can be broken down like this:

• flugt = escape
• vej = way / route
• flugtvej = escape route
• skilt = sign
• flugtvejsskilt = escape route sign
• flugtvejsskiltet = the escape route sign

So Danish prefers one long noun where English might say the escape route sign.

Those are the definite endings in Danish. Instead of usually putting the in front of a noun, Danish often adds it to the end.

In this sentence:

• skilt = a sign

• skiltet = the sign

• flugtvej = an escape route
• flugtvejen = the escape route

The reason the endings are different is that Danish nouns belong to different grammatical genders:

• skilt is neuter, so it takes -et
• flugtvej is common gender, so it takes -en

So:

• et skilt → skiltet
• en flugtvej → flugtvejen

You learn it from the indefinite article:

• et skilt
• en flugtvej

In Danish, the article tells you the noun’s gender:

• en = common gender
• et = neuter

That matters later when you make the noun definite:

• et skilt → skiltet
• en flugtvej → flugtvejen

So it is important to learn new nouns together with en or et.

Danish often uses verbs like stå, ligge, and sidde where English would simply use be.

Here, står literally means stands, but in natural English this often just means is located.

So:

• Flugtvejsskiltet står ved flugtvejen
  = The escape route sign is by the escape route

Danish uses:

• står for things thought of as standing upright or positioned vertically
• ligger for things lying down or being located somewhere
• sidder for things attached or sitting in place

A sign is often understood as something that stands, especially if it is mounted or positioned upright.

Ved usually means by, at, near, or next to, depending on context.

In this sentence, ved flugtvejen means something like:

• by the escape route
• near the escape route
• at the escape route

It does not necessarily mean directly on it; it just places the sign close to it.

That s is a common linking element in Danish compounds.

You have:

• flugtvej
  • skilt
• becomes flugtvejsskilt

That extra s helps the compound sound natural. English has something similar in a few older formations, but Danish uses this kind of linking much more regularly in compounds.

You cannot always predict it perfectly at first, so it is something learners gradually get used to by seeing many examples.

Yes.

flugtvej = flugt + vej

• flugt = escape
• vej = way / road / route

So flugtvej literally means escape way/route.

Then Danish builds another compound on top of that:

• flugtvej
  • skilt = flugtvejsskilt

This stacking of compounds is very normal in Danish.

The basic structure is:

• Flugtvejsskiltet = subject
• står = verb
• ved flugtvejen = prepositional phrase showing location

So the pattern is:

Subject + verb + place

This is a very normal Danish main-clause word order.

You would say:

Et flugtvejsskilt står ved en flugtvej.

Compare:

• et flugtvejsskilt = an escape route sign
• flugtvejsskiltet = the escape route sign

and:

• en flugtvej = an escape route
• flugtvejen = the escape route

So the sentence changes from definite to indefinite by removing the definite endings and using et / en instead.

A natural plural version would be:

Flugtvejsskiltene står ved flugtvejene.

That means The escape route signs are by the escape routes.

Relevant forms:

• et flugtvejsskilt = an escape route sign
• flugtvejsskiltet = the escape route sign
• flugtvejsskilte = escape route signs
• flugtvejsskiltene = the escape route signs

And:

• en flugtvej = an escape route
• flugtvejen = the escape route
• flugtveje = escape routes
• flugtvejene = the escape routes

A rough English-friendly approximation is:

FLOOKT-vai-skil-ted stor vel FLOOKT-vai-en

A few notes:

• flugt has a short, clipped vowel
• vej sounds roughly like vai
• skiltet is often pronounced more smoothly than its spelling suggests
• ved in normal speech may sound a bit like vel
• står has a vowel sound that does not match English exactly

The most important thing is to hear native audio, because Danish pronunciation is often less obvious from spelling than English learners expect.

Yes, that would be understandable, and it can sound natural in some contexts. But står is often more idiomatic if you are describing the physical position of a sign.

So:

• er ved flugtvejen = is by the escape route
• står ved flugtvejen = is standing / is located by the escape route

Danish often prefers the more specific position verb when it fits the situation.