The most common and most likely answer to this crossword clue is the 7 letter word SHROUDS
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More clues leading to the result SHROUDS
Buddy explains!

The straight part
We know that "sheets" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case sheets = shrouds.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 SHROUDS mean?
SHROUDS noun- That which clothes, covers, conceals, or protects; a garment.
- Especially, the dress for the dead; a winding sheet.
- That which covers or shelters like a shroud.
- A covered place used as a retreat or shelter, as a cave or den; also, a vault or crypt.
- A rope or cable serving to support the mast sideways.
- One of the two annular plates at the periphery of a water wheel, which form the sides of the buckets; a shroud plate.
- To cover with a shroud.
- To conceal or hide from view, as if by a shroud.
- To take shelter or harbour.
- The branching top of a tree; foliage.
- To lop the branches from (a tree).