I'm thinking of the type of situation where the topic being discussed is embarrasing, taboo, un-politically correct, or uncomfortable for one or all of the participants. Neither person wants to talk in specific terms. Instead things are implied, inferences are made. Everyone knows exactly what is being spoken about but no one comes right out and says it.
Is there a word for that?
Avoidance?
I don't have a simple word for such a conversation, but I would refer to the indirect meaning as the Subtext. Innuendo implies to me a more obvious reference to something else, with more overt desire for the other meaning to be consciously understood. Same for Allegory or Allusion.
But how to refer succinctly to such a subtext-laden conversation eludes me.
I had such a conversation this morning. They happen often in families, and among people with lots of shared experience. There is also the cliche first session opener with a counselor: "I have a friend who has this problem … ."
For me, circumlocution or periphrase imply wordiness, which is distinctly not a feature of such conversations, more than they feature the indirect quality of the conversation.
If I were to construct a term for it, it might be a perilog/perilogue.
The simple answer is "mind reading." Sorry. Couldn't resist. In so many situations in life, there is no one single word that is an adequate descriptor. One simply has to "dance around" the topic....