Cryptic crossword clue
Yarn from northern town, last bit from mill 6

The most common and most likely answer to this crossword clue is the 6 letter word CREWEL

I've seen this crossword clue in The Daily Telegraph
C
R
E
W
E
L

Buddy explains!

The straight part
We know that "Yarn" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case yarn = crewel.
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 CREWEL mean?

CREWEL noun
  1. Worsted yarn, slackly twisted, used for embroidery.
CREWEL verb
  1. To make (embroidery) using the crewel method.

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