Second bath and balder, regularly dropping lots of little hairs (7)
I believe the answer is:
stubble
'lots of little hairs' is the definition.
(stubble can mean short hairs)
'second bath and balder regularly dropping' is the wordplay.
'second' becomes 's' (common abbreviation).
'bath' becomes 'tub' (synonyms).
'and' says to put letters next to each other.
'regularly dropping' means one should take alternating letters (letters removed at regular intervals).
The alternate letters of 'balder' are 'ble'.
's'+'tub'+'ble'='STUBBLE'
(Other definitions for stubble that I've seen before include "Short whiskers" , "Effect of ceasing to shave" , "Unshaven growth on the face" , "Early growth of beard" , "Short stiff hairs on a man's face before a shave" .)