It's lace put out of shape when stretched! (7)

I believe the answer is:

elastic

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'shape when stretched' is the definition.
I can't tell whether this defines the answer.

'it's lace put out' is the wordplay.
'put out' indicates anagramming the letters.
'its'+'lace'='itslace'
'itslace' with letters rearranged gives 'ELASTIC'.

'of' acts as a link.

Can you help me to learn more?

(Other definitions for elastic that I've seen before include "Springing back to shape after stretching" , "'Flexible, springy (7)'" , "Flexible, adaptable" , "Stretchy knicker material" , "Ductile" .)

I've seen this clue in The Irish News.

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