Light in sky or in atmosphere (6)

I believe the answer is:

aurora

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'light in sky' is the definition.
'aurora' can be an answer for 'light' (thesaurus). I'm unsure of the 'in sky' bit.

'or in atmosphere' is the wordplay.
'in' means one lot of letters goes inside another.
'atmosphere' becomes 'aura' (synonyms).
'or' placed within 'aura' is 'AURORA'.

Can you help me to learn more?

(Other definitions for aurora that I've seen before include "Phenomenon in sky" , "Polar skies phenomenon" , "Roman goodess of the dawn" , "Northern/southern lights" , "Northern or southern lights" .)

I've seen this clue in The Sun.

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