The most common and most likely answer to this crossword clue is the 7 letter word EYEDROP
E
Y
E
D
R
O
P
More clues leading to the result EYEDROP
Buddy explains!
The straight part
We know that "what used to be shed, sadly" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case what used to be shed, sadly = eyedrop.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.