The most common and most likely answer to this crossword clue is the 4 plus 6 letter word DRAG QUEENS
I've seen this crossword clue in Financial Times
D
R
A
G
Q
U
E
E
N
S
Buddy explains!
The straight part
We know that "folk dressing unconventionally" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case folk dressing unconventionally = drag queens.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.