The most common and most likely answer to this crossword clue is the 5 letter word CHICA
C
H
I
C
A
Buddy explains!
The straight part
We know that "dye" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case dye = chica.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 CHICA mean?
CHICA noun- A Latin-American girl; a Latina.
- An orange-red dyestuff obtained by boiling the leaves of the bignonia.