Clue: Padding over where arm's held close to body (10)
Answer: UPHOLSTERY
Explanation: Definition: Padding
 UP(over, as in "time's up!") + HOLSTER(the accessory worn on the body, in which/where a handgun/firearm is held) + **last letter of**(close to) "body".
Defn: … covering and fixed to furniture items.