Crossword Genius

Word for area surrounded by water in Dali’s lexicon (4)

Ross

I believe the answer is:

isle

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'word for area surrounded by water' is the definition.
I can't judge whether this definition defines the answer.

'in dali's lexicon' is the wordplay.
'in' indicates a hidden word.
'ISLE' is hidden in the letters of 'dalis lexicon'.

Can you help me to learn more?

(Other definitions for isle that I've seen before include "Dogs, say" , "somewhere surrounded by water" , "The Emerald - (Ireland)" , "small piece of land" , "Detached territory" .)

I've seen this clue in The Hindu.
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