Stayed over in south Devon, initially (5)
I believe the answer is:
stood
'stayed' is the definition.
(standing is a kind of staying)
'over in south devon initially' is the wordplay.
'over' becomes 'too' (I've seen this before).
'in' means one lot of letters goes inside another.
'initially' says to take the initial letters.
The initial letters of 'south devon' is 'sd'.
'too' placed into 'sd' is 'STOOD'.
(Other definitions for stood that I've seen before include "Was a candidate for election" , "Was situated" , "Tolerated; stayed upright" , "Remained valid" , "Was upstanding" .)