Here is a direct quote from the DE where I buy mine from:
This effective remedy against many insects is made from the skeletons of small, fossilized one-celled creatures called diatoms, which existed in oceans & lakes and constructed tiny shells around themselves out of the silica they extracted from the waters. The microscopic shells, deposited on the floor of the ancient seas, collected into deposits sometimes thousands of feet deep. This earth contains microscopic needles of silica which do their work by puncturing the bodies of insects, allowing vital moisture to escape from them. The insects die from dehydration. It is so finely milled that it poses no threat to either humans or animals, but these particles, when taken internally by insects, interfere with breathing, digestion, and reproductive processes. It will not harm earthworms. It is useful as a dusting agent for gypsy moth, codling moth, pink bollweevil, lygus bug, twig borer, thrip, mites, earwigs, cockroach, slugs, adult mosquitoes, snails, nematodes, all species of flies, corn worm, tomato hornworm, mildew and more. Diatomaceous Earth (DE) is a fine powder and should not be breathed � wear a mask when applying.
This quality Diatomaceous Earth is food grade. It is a fine light grey powder.
DE is an abrasive dust commonly used to kill pests in the home and garden. It is unique among the insecticidal dusts, since it works by physical rather than chemical action. The microscopic shells are covered with sharp needlelike projections that penetrate an insect's cuticle, allowing vital liquids to leak out. DE also absorbs the waxy coatings on insects' bodies; both actions cause pests to die of dehydration. It is nonselective and may kill desirable insects.
Plants and soil may be dusted to control crawling pests like slugs and snails. On plant foliage, DE will kill soft-bodied pests like aphids, caterpillars, leaf-hoppers, and thrips; hairy-bodied pests may be somewhat resistant. Useful as a dusting agent for gypsy moth, codling moth, pink bollweevil, lygus bug, twig borer, thrip, mites, earwigs, cockroach, slugs, adult mosquitos, snails, nematodes, all species of flies, corn worm, tomato hornworm, mildew and more. Best when applied with an electrostatic charger.
Apply only in problem areas to minimize harm to beneficials. When applied around the base of susceptable seedlings like cabbage, onions and other transplants, DE helps control root maggots and other soil-dwelling pests. Avoid dusting flowers. For stubborn thrips infestations, dust only the undersides of affected leaves and in a circular band on the soil beneath each plant. Apply when plants are wet with dew or after overhead watering, to help keep the dust on the plants. Mix DE with liquid dish soap and water to make a thick slurry; paint on the tree trunks to protect them.
DE is so fine that it poses no threat to either humans or animals. It will not harm earthworms, animals, humans or birds. However, it is strongly suggested that you use a protective mask and goggles when handling this fine powder to guard against respiratory and eye irritations. Don't apply the dust where children are likely to encounter it. Rain will dilute or wash away DE and reapplication may be necessary.
An excellent product for use in stored grain and seeds and for indoor flea and louse control. Farmers often add DE to animal feed to control internal parasites of livestock. If used in pet food start with very small amounts watching for diarrhea...perhaps 1/4 teaspoon for a house cat per day.
Contains less than 1% crystalline silica.
For Storing Grains: Generally used at the rate of 1 1/4 cup per 6 gallon bucket* (a shy 1/4 cup per gallon) or 5 pounds per ton. *It is suggested that it be placed in the bucket with the product and then thoroughly rolled and turned to assure good mixing.