Any thoughts on how to fix? 

 

i think i had a similar problem and diawa  told me its  was a bad pinion and/or drive gear.

if youre still under warranty id ship it to them.

? It is internal. You might here the line running also. But it definitely is clicking. Disassembled. Greased. Oiled. 

It's nearly impossible to diagnose online, unless it's a common known malfunction.

Is it new? Has it always done it? Did you "service" it and then it started? Did it start shortly after you mistook the handle for a propeller?...

Try turning the handle slowly and note where the resistance or click occurs. If it's the same position of the handle each time, it's going to be handle related, so look for the star drag or handle touching something, if it occurs at more random points it is more likely to be the spool or gears making the noise. 

Is it the line slapping the frame as you spin the handle?