Worldly Liberal wearing blue? (7)
I believe the answer is:
earthly
'worldly' is the definition.
(similar in meaning)
'liberal wearing blue?' is the wordplay.
'liberal' becomes 'l' (abbreviation).
'wearing' is an insertion indicator.
'blue?' becomes 'earthy' (both can mean sexual).
'l' inserted into 'earthy' is 'EARTHLY'.
(Other definitions for earthly that I've seen before include "Mundane" , "Relating to material things" , "a hopeless person doesn't have" , "being from this planet" , "Relating to material existence as distinct from a spiritual one" .)