Way mod limits the dancing (6)
I believe the answer is:
method
'way' is the definition.
(method is a kind of way)
'mod limits the dancing' is the wordplay.
'limits' is an insertion indicator (limit can mean to contain or block off).
'dancing' indicates anagramming the letters.
'the' is an anagram of 'eth'.
'mod' going around 'eth' is 'METHOD'.
(Other definitions for method that I've seen before include "Orderliness (of thought or behaviour)" , "rule" , "Manner, technique" , "Way of doing something, perhaps in madness" , "Way of doing something, procedure" .)