Nope! I mean I'm sure there's some microscopic dust, but it's nothing near the dust level of cat litter. Once I found this stuff, I was so happy. I actually love the smell. Makes the coop smell like a log cabin or something when it's fresh lol. I also use it in the nest boxes, and this winter I have been mixing it 50/50 with sand for a dust bath and my chickens love to bathe in it. I always have a bag or two of this stuff on hand.
Edit: Saying that I use it in my dust bath makes it sound like it's dusty but it's really not. Mixed with the sand, it forms a dry soil-like consistency that they like to bathe in. Just wanted to clear that up lol. Try this stuff! It's so cheap, you won't regret it. I even sprinkle some of the pellets in muddy areas of my run to make it less messy. It's magical stuff.