It's no good embracing everything in one song (6)
I believe the answer is:
ballad
'one song' is the definition.
(ballad is a kind of song)
'it's no good embracing everything' is the wordplay.
'it's no good' becomes 'bad' (similar in meaning).
'embracing' is an insertion indicator.
'everything' becomes 'all' (all things).
'bad' placed around 'all' is 'BALLAD'.
'in' is the link.
(Other definitions for ballad that I've seen before include "delivered by singer" , "Song type" , "Folk song" , "Narrative song with a recurrent refrain" , "A simple or old song" .)