Animal label cut up (6)
I believe the answer is:
wombat
'animal' is the definition.
(wombat is a kind of animal)
'label cut up' is the wordplay.
'label' becomes 'tab' (I've seen this before).
'cut' becomes 'mow' (mowing is a kind of cutting**).
'up' says the letters should be written in reverse (in down clue: letters go upwards).
'tab'+'mow'='tabmow'
'tabmow' back-to-front is 'WOMBAT'.
(Other definitions for wombat that I've seen before include "Australian animal like small bear" , "Marsupial of Oz" , "Australian animal resembling small bear" , "Australian burrowing marsupial" , "Tailless marsupial down under" .)