Lay figure puts out a fire far from fair (4)

I believe the answer is:

ugly

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'lay' is the definition.
Both the definition and answer are adjectives. Perhaps they are linked in a way I don't understand?

I don't understand how the rest of the clue works.

Can you help me to learn more?

(Other definitions for ugly that I've seen before include "Horrible" , "Hideous" , "offensive to look at" , "Disquieting" , "Unlovely" .)

I've seen this clue in the Irish Times.

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