The most common and most likely answer to this crossword clue is the 3 plus 7 letter word HEY PRESTO!
I've seen this crossword clue in The Guardian
H
E
Y
P
R
E
S
T
O
!
Buddy explains!
The straight part
We know that "it’s magic!/ it’s magic!" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case it’s magic!/ it’s magic! = hey presto!.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.