The most common and most likely answer to this crossword clue is the 7 letter word PARCHED
I've seen this crossword clue in The Guardian
P
A
R
C
H
E
D
More clues leading to the result PARCHED
Buddy explains!

The straight part
We know that "Dry" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case dry = parched.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.
What does PARCHED mean?
PARCHED verb- To burn the surface of, to scorch.
- To roast, as dry grain.
- To dry to extremity; to shrivel with heat.
- To make thirsty.
- To boil something slowly (Still used in Lancashire in parched peas, a type of mushy peas).
- To become superficially burnt; be become sunburned.
- Dry.
- Very thirsty.