The most common and most likely answer to this crossword clue is the 3 plus 7 letter word EYE ASKANCE
E
Y
E
A
S
K
A
N
C
E
Buddy explains!
The straight part
We know that "Suspiciously observe" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case suspiciously observe = eye askance.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.