Sort of jazz dance covered by black European (5)
I believe the answer is:
bebop
'sort of jazz' is the definition.
(type of jazz)
'dance covered by black european' is the wordplay.
'dance' becomes 'bop' (bopping is a kind of dancing).
'covered' means one lot of letters goes inside another.
'by' is a charade indicator (letters next to each other).
'black' becomes 'b' (as in pencil classifications).
'european' becomes 'E' (abbreviation e.g. EU).
'b' put after 'e' is 'eb'.
'bop' going around 'eb' is 'BEBOP'.
(Other definitions for bebop that I've seen before include "Jazzy music style" , "Jazz genre" , "Form of modern jazz from about 1940" , "music played in jazz club" , "Fast, complex jazz" .)