Needlework absorbs a little time, note (8)
I believe the answer is:
crotchet
'note' is the definition.
(crotchet is a kind of note)
'needlework absorbs a little time' is the wordplay.
'needlework' becomes 'crochet' (crochet is a kind of needlework).
'absorbs' is an insertion indicator.
'a little time' becomes 't' (abbreviation for time).
'crochet' placed around 't' is 'CROTCHET'.
(Other definitions for crotchet that I've seen before include "perverse notion" , "Fancy" , "In music, it has quarter the time value of a whole note" , "Quarter of a semibreve" , "as mark scored" .)