Bird smaller than a fowl? (3)

I believe the answer is:

owl

I'm a little stuck... Click here to teach me more about this clue!

'bird' is the definition.
(owl is a kind of bird)

'smaller than a fowl?' is the wordplay.
'OWL' is hidden within the letters.
But, I am uncertain how the hidden word is indicated.

Can you help me to learn more?

(Other definitions for owl that I've seen before include "Wise old night-flier" , "One swoops" , "Pussy-cat's wooer (Lear)" , "Wise figure" , "Nightbird" .)

I've seen this clue in The Globe and Mail.

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