Fine land around Leicester's outskirts (3,5)
I believe the answer is:
all right
'fine' is the definition.
('all right' can be a synonym of 'fine')
'land around leicester's outskirts' is the wordplay.
'land' becomes 'alight' (alighting is a kind of landing**).
'around' means one lot of letters goes inside another.
'outskirts' says to hollow out the word (remove centre letters) (I've seen 'outskirts of' mean this).
'leicester' with its middle removed is 'lr'.
'alight' placed around 'lr' is 'ALL-RIGHT'.
(Other definitions for all right that I've seen before include "Completely one-sided" , "What's clearly acceptable" , "Safe - adequate" , "unharmed?" , "Very well, as you ask - everything's fine" .)