expression, godan verb (-mu)
to say indirectly; to sugarcoat; to cushion the blow
Idiomatic expression meaning to phrase something gently or indirectly to avoid hurting someone's feelings. The literal meaning is 'to wrap in wafer paper', which is the image behind the idiom.
彼は批判をオブラートに包んで伝えた。
He conveyed the criticism in a roundabout way.
It's better to break bad news gently.