Absolutely wrong to use these terms. Dads should not be referring to their daughters using these words. If he's thinking of this word specifically, he has to be looking at her in sexual terms. If she's not uncomfortable with this, I would be surprised.

How is this impacting her? Now she is learning that the world judges her in terms of her sexuality, and it is just fine with her father. He's OK with adult men looking at her in sexual terms (why not? He is!).

Finally, I would watch this relationship carefully. There is a very fine line between a loving relationship and an unhealthy one, especially now that this line has been crossed. Be conscious of how he treats her friends as well. Are they comfortable around him? Is he saying things to them? Watch the other moms grab on to that, and the play dates dry up quick.

The term sexy carries sexual connotations, it’s just a poor choice of description to be calling a young girl, who is only a few years short of being a teenager, where she will experience enough sexual connotations from teenage boys without having her father add to it as well.

Let him know that it upsets you, as it objectifies your daughter, and would he please use beautiful instead
Warm regards

Eric

This is unacceptable. Confront your idiot husband and tell him to stop. Daughters look for affection from fathers and this is important but this sort of affection is plain wrong. Being sexy means that someone must have sex appeal, for someone to have sex appeal then they must reflect certain characteristic's which I hope your little girl dosent.

Yep completely agree with Will;

Hmm I have a little girl and I dont think no matter what the age calling your daughter "sexy" is just unacceptable. If I found myself saying this to another women even my wife would be a bit upset and believe you me she is a very understanding lady and very open minded.
Just tell your husband that you dont like it and you wont accept it.

I'm sorry what?

There is no where, way, shape or form that is acceptable to call your ten year old child "sexy." The very term "sexy" denotes a connotation of the desirability to have sexual relations with an individual. Popular, and misguided, usage aside, this is totally unacceptable.