Theory:

     When Payal’s mother opened the carton, there was the smallest of owlets sitting in one corner, a small ball of brown and grey. Payal’s mother picked her up gently and placed her in her lap, talking to her just as she would to the dogs. She had never handled owls before, so she was very careful not to get pecked. When the owl got used to her, and seemed relaxed enough, Payal’s mother placed her inside a cage. There were always empty cages in Payal’s house – just in case a bird dropped in! The baby owl climbed on the rod and settled herself.

     ‘Mom, what shall we call her?’ asked Payal, all excited. ‘You choose a name’, said her mother, smiling. ‘How about Owlie?’ asked Payal. So Owlie it was. The name was settled, but there was a bigger problem. What does one feed an owl?
Explanation:
  
Shefali seems to be a bigger girl than Payal because she referred to her as didi. She may be a neighbour or a friend, who had walked in with a box in her hand. Payal's mother opened the carton and saw an owlet (small owl) sitting in a corner. The owlet looked like a small ball in brown and grey colour. She picked up the owlet softly and kept it on her lap. She started talking to the owlet, just like she spoke to her dogs.  She had never touched or had an owl before, so she was very careful that she should not scare the owl. If she scared the owl, it might strike/bite with its beakAfter the owl had settled down in her hand and relaxed, she put her inside a cage. Payal's mother always had empty cages, as any bird may come in anytime and she would rescue the bird. The owlet climbed on the rod and became comfortable.
 
bird-cage.jpg
  
Payal was excited, and she asked her mother how to name the owl. Her mother allowed her to choose a name for an owl. Payal suggested "Owlie", and that was how it was named. The problem of finding a name was over, but the next problem started; they wondered what do they generally feed owls with!
 
Meanings difficult words:
 
Words
Meanings
owleta tiny, young owl
peckedstrike/bite with beak
Reference:
State Council of Educational Research and Training (2019). Term-1 English Standard-6. Owlie - Vijaya Ghose(pp. 101-104). Published by the Tamil Nadu Textbook and Educational Services Corporation.