Display letters showing little drama (7)
I believe the answer is:
playlet
'little drama' is the definition.
(I've seen this before)
'display letters showing' is the wordplay.
'showing' says the answer is hidden in the clue (the answer is shown in the clue).
'PLAYLET' is hidden in the letters of 'display letters'.
(Other definitions for playlet that I've seen before include "little drama" , "Short scenes" , "Short drama" , "Sketch" , "Small drama" .)