Feeling of dread lifted (4)
I believe the answer is:
mood
'feeling' is the definition.
(I know that mood is a type of feeling)
'of dread lifted' is the wordplay.
I cannot really understand how this works, but
'of' could be 'o' and 'o' is found in the answer.
The remaining letters 'mod' is a valid word which might be clued in a way I don't understand.
This may be the basis of the clue (or it may be nonsense).
Can you help me to learn more?
(Other definitions for mood that I've seen before include "Disposition" , "melancholy" , "Feeling of doom" , "sullenness may be indicative" , "Temporary state of mind" .)