As a traveler, shorts in Europe are problematic for a few reasons. They are not allowed in most churches unless they cover the knee. They are not allowed in upscale restaurants.
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Men are explicitly requested to wear long pants. Women are requested to wear dresses, skirts and pants that go past the knee. So capri pants are ok. Churches other than at the Vatican are more lenient on this one but still request clothing that covers the knee.
As a traveler, shorts in Europe are problematic for a few reasons. They are not allowed in most churches unless they cover the knee. They are not allowed in upscale restaurants.
The Greek dress code is generally casual and relaxed, but it's important to respect certain cultural norms, particularly when visiting religious sites. In religious sites, you will want to be sure your knees and shoulders are covered. Yes, it's traditional, but better to either not enter or be respectful.
The climate in Crete is a Mediterranean one.For example, between May and September, you can wear short and light clothing to cope with the local temperatures. For the beach, you'll need a swimsuit and some flip-flops that you can replace with some walking shoes for your hikes.
For warm-weather activities shorts are fine. Leave the Hawaiian prints at home. For evening, a collared shirt and nice trousers or dress jeans are appropriate. A lightweight rain jacket is ideal, especially in the cooler seasons.
For the majority of places, such as museums, beaches, and stores, there are no restrictions on what you can wear. Many tourists and locals will wear shorts to these places when the weather is hot. At churches and the Vatican, you can only enter if your knees and shoulders are covered and you aren't wearing a hat.