The Collaborative International Dictionary of English v.0.48:

Racy \Ra"cy\ (r[=a]"s[y^]), a. [Compar. Racier
   (r[=a]"s[i^]*[~e]r); superl. Raciest.] [From Race a
   tribe, family.]
   1. Having a strong flavor indicating origin; of distinct
      characteristic taste; tasting of the soil; hence, fresh;
      rich.
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            The racy wine,
            Late from the mellowing cask restored to light.
                                                  --Pope.
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   2. Hence: Exciting to the mental taste by a strong or
      distinctive character of thought or language; peculiar and
      piquant; fresh and lively; vigorous; spirited.
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            Our raciest, most idiomatic popular words. --M.
                                                  Arnold.
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            Burns's English, though not so racy as his Scotch,
            is generally correct.                 --H.
                                                  Coleridge.
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            The rich and racy humor of a natural converser fresh
            from the plow.                        --Prof.
                                                  Wilson.
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   3. Somewhat suggestive of sexual themes; slightly improper;
      risqu['e].
      [PJC]

   Syn: Spicy; spirited; lively; smart; piquant; risqu['e].

   Usage: Racy, Spicy. Racy refers primarily to that
          peculiar flavor which certain wines are supposed to
          derive from the soil in which the grapes were grown;
          and hence we call a style or production racy when it
          "smacks of the soil," or has an uncommon degree of
          natural freshness and distinctiveness of thought and
          language. Spicy, when applied to style, has reference
          to a spirit and pungency added by art, seasoning the
          matter like a condiment. It does not, like racy,
          suggest native peculiarity. A spicy article in a
          magazine; a spicy retort. Racy in conversation; a racy
          remark.
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                Rich, racy verses, in which we
                The soil from which they come, taste, smell, and
                see.                              --Cowley.
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