Mere daydream, but vicar’s drifted off (4)
I believe the answer is:
erie
'mere' is the definition.
(mere can mean a lake eg Lake Erie)
I can't explain the remainder of the clue.
(Other definitions for erie that I've seen before include "Buffalo's lake" , "North american lake sounds spooky" , "Great lake in Eire" , "One of the Great Lakes" , "N. American lake" .)