Note working in wool will absorb time (8)
I believe the answer is:
crotchet
'note' is the definition.
(musical note)
'working in wool will absorb time' is the wordplay.
'working in wool' becomes 'crochet' (craft with wool).
'will absorb' is an insertion indicator.
'time' becomes 't' (abbreviation).
'crochet' enclosing 't' is 'CROTCHET'.
(Other definitions for crotchet that I've seen before include "One in bar" , "Fancy" , "In music, it has quarter the time value of a whole note" , "Quarter of a semibreve" , "Musical note equal to half a minim" .)