Towel wrapped round chick (5)

I believe the answer is:

owlet

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'chick' is the definition.
(a young owl)

'towel wrapped round' is the wordplay.
'towel' anagrams to 'OWLET'.
But, I'm not clear how this is indicated.

Can you help me to learn more?

(Other definitions for owlet that I've seen before include "Baby nocturnal raptor" , "Wise young" , "Young nocturnal bird of prey" , "Little nocturnal bird" , "Young nocturnal flier" .)

I've seen this clue in The Mirror.

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