In M. Reid Canonical 3-folds I found this proposition:

If $\phi:Y\rightarrow X$ is a proper morphism with both $X$ an $Y$ normal and such that $f$ is étale in codimension 1 then

1) if $X$ has canonical singularities so does $Y$

2) if $Y$ has canonical singularities and $X$ is Gorenstein, then $X$ has canonical singularities

Do I interpret it correctly if I say that it implies that if I have a normal divisor $D\subset Y$ with $Y$ smooth projective, then $D$ has canonical (and hence rational since it is Gorenstein) singularities? (I take a log-resolution $(Y', D')$ with $D'$ smooth, thus I have a proper map étale in codimension 1 $D'\rightarrow D$ with both varieties normal an $D'$ with only canonical sing, furthermore the dualizing sheaf of $D$ is a line bundle. Then I use the proposition). Why does this sound so weird to me? What do I miss?

Could give me an example of a variety that it is smooth in codimension 1 but not normal?