Incoherent type passed away over small local bar (10)
I believe the answer is:
disjointed
'incoherent' is the definition.
('disjointed' can be similar in meaning to 'incoherent')
'passed away over small local bar' is the wordplay.
'passed away' becomes 'died' ('die' can be a synonym of 'pass away').
'over' means one lot of letters goes inside another.
'small' becomes 's' (abbreviation - e.g. clothes size).
'local bar' becomes 'joint' (I can't explain this - if you can you should give a lot more credence to this answer).
's'+'joint'='sjoint'
'died' enclosing 'sjoint' is 'DISJOINTED'.
'type' acts as a link.
I am not very happy about this link. It may be part of another bit of the clue.
Can you help me to learn more?
(Other definitions for disjointed that I've seen before include "Spasmodic" , "Lacking coherence" , "Lacking a coherent sequence" , "Incoherent" .)