It makes light of being a beetle (7)
I believe the answer is:
firefly
'beetle' is the definition.
(I know that firefly is a type of beetle)
I cannot understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for firefly that I've seen before include "Glower" , "One shining" , "Luminescent insect" , "Light horse-drawn carriage" , "Winged beetle - racing dinghy" .)