Watch. No hands! (7)
I believe the answer is:
digital
'watch' is the definition.
(digital watch is a kind of watch)
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for digital that I've seen before include "numerical information" , "Of data expressed as a series of 0 and 1" , "Like modern cameras" , "computerised?" , "Made up of numerals, a watch or other display" .)