Spell and sign name inside (6)
I believe the answer is:
trance
'spell' is the definition.
('trance' can be a synonym of 'spell')
'sign name inside' is the wordplay.
'sign' becomes 'trace'.
'name' becomes 'n' (common abbreviation e.g. on forms).
'inside' means one lot of letters goes inside another.
'trace' enclosing 'n' is 'TRANCE'.
'and' acts as a link.
(Other definitions for trance that I've seen before include "Daze" , "Canter into state of hypnosis" , "state of shock" , "Nectar (anag)" , "State of abstraction" .)