Well-known way in which Christmas is enjoyed (10)
I believe the answer is:
celebrated
'well-known' is the definition.
(thesaurus)
I cannot understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for celebrated that I've seen before include "Notable" , "Did something enjoyable (to mark an event)" , "Publicly honoured" , "Eminent" , "Observed (festival); famous" .)