Lid on chest modified to display tools (8)
I believe the answer is:
hatchets
'tools' is the definition.
(hatchet is a kind of tool)
'lid on chest modified' is the wordplay.
'lid' becomes 'hat' (synonyms).
'on' means one lot of letters goes inside another.
'modified' indicates an anagram.
'chest' is an anagram of 'chets'.
'hat' going inside 'chets' is 'HATCHETS'.
'to display' acts as a link.
(Other definitions for hatchets that I've seen before include "Choppers" , "tools" , "Small axes with short handles" .)