Personally, I've never seen one wearing a hood (5)
I believe the answer is:
pixie
'hood' is the definition.
(thesaurus)
I don't understand the rest of the clue.
Can you help me to learn more?
(Other definitions for pixie that I've seen before include "Small supernatural being in fairy tales" , "Elfin fairy" , "Small supernatural being in fairy tale" , "Mischievous fairy" , "Sprite" .)