Down in the dale, perhaps, it's tolerated (7)
I believe the answer is:
allowed
'tolerated' is the definition.
(thesaurus)
'down in the dale perhaps' is the wordplay.
'down' becomes 'low' (associated in meaning).
'in the' means one lot of letters goes inside another.
'perhaps' is an anagram indicator.
'dale' anagrammed gives 'aled'.
'low' placed into 'aled' is 'ALLOWED'.
'it's' acts as a link.
(Other definitions for allowed that I've seen before include "Legitimate" , "Given permission" , "Permitted and granted" , "Acknowledged" , "Owned" .)