Yes, Terry lost right ear, that's in the past (10)
I believe the answer is:
yesteryear
'in the past' is the definition.
(I've seen this before)
'yes terry lost right ear' is the wordplay.
'lost' indicates named letters should be taken away.
'right' becomes 'r' (common abbreviation).
'terry' with 'r' removed is 'tery'.
'yes'+'tery'+'ear'='YESTERYEAR'
'that's' acts as a link.
(Other definitions for yesteryear that I've seen before include "Nostalgic days" , "Days gone by" , "The recent past" , "nostalgic time, perhaps" , "Time disappeared" .)