I’d dance around as character in satire (7)
I believe the answer is:
candide
'character in satire' is the definition.
(literary character)
'i'd dance around' is the wordplay.
'around' indicates anagramming the letters.
'id'+'dance'='iddance'
'iddance' with letters rearranged gives 'CANDIDE'.
'as' is the link.
(Other definitions for candide that I've seen before include "Voltaire's satire" , "comic operetta" , "Voltaire novel" .)