Cryptic crossword clue
People looking on as Prescott dances 10

The most common and most likely answer to this crossword clue is the 10 letter word SPECTATORS

I've seen this crossword clue in The Daily Telegraph
S
P
E
C
T
A
T
O
R
S

Buddy explains!

The straight part
We know that "People looking on" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case people looking on = spectators.
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 SPECTATORS mean?

SPECTATORS noun
  1. One who watches an event; especially, one held outdoors.

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