See action unfolding in place (8)
I believe the answer is:
location
'place' is the definition.
(I've seen this before)
'see action unfolding in' is the wordplay.
'see' becomes 'lo' (archaic word meaning 'look!').
'unfolding' indicates anagramming the letters (untangle or unfold the original letter order).
'in' is an insertion indicator.
'action' is an anagram of 'cation'.
'lo' put within 'cation' is 'LOCATION'.
(Other definitions for location that I've seen before include "Spot - where films may be shot" , "Site of film production away from studio" , "Position, point in space" , "Setting" , "Particular place" .)