Fool from Honiton (3)
I believe the answer is:
nit
'fool' is the definition.
(I've seen this before)
'from honiton' is the wordplay.
'from' indicates the answer is hidden within the clue.
'NIT' is hidden within 'honiton'.
(Other definitions for nit that I've seen before include "Young louse" , "Egg of a head louse" , "Cause of much head-scratching" , "Louse's egg; idiot" , "Hair louse" .)