The most common and most likely answer to this crossword clue is the 8 letter word HENHOUSE
I've seen this crossword clue in The Times
H
E
N
H
O
U
S
E
More clues leading to the result HENHOUSE
Buddy explains!
The straight part
We know that "Shed" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case shed = henhouse.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 HENHOUSE mean?
HENHOUSE noun- A small house or hutch for chickens or, more specifically, hens to live in.