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@pipdzipdnreadytogo
There used to be (and probably still is) a lot of talk about putting DE in the chicken feed because folks thought that it would prevent internal parasites when the birds ate it. I don't think this is true BUT.....
I think that DE was originally put in the feed to
PREVENT WEEVILS AND OTHER BUGS from hatching IN THE DRY GRAIN!!!!!
I DO think that is a legitimate use and one time I got a bag of corn that had some bugs hatching in it. I put in about 1/4 cup of DE to the 50 lb. bag and it took care of them right away. And I would use it that way to prevent hatching buggies in the dry grain. I seriously think that was how it was originally used in grain bins on farms and mills that didn't want to use chemical pesticides on their grains. (Not for the purpose of preventing parasites in the intestinal tract of the animals!)
So I DO think it has it's place! And I would certainly consider using it like you are saying (and would definitely have used it to take care of the grain mites) if I were trying to contain an infestation and not use chemicals!

I had been adding it to my birds dust bathing areas. Not added any recently, but I have not seen mites or lice on any of my birds.
It seems that Indiana has gone into Fall hibernation.
think so many of us are working on winterizing, i know i have had very full days lately.
The use of DE for the bugs in feed hatching sounds like a reasonable use. Really though the more I consider it the use of it to dry the poo actually seems counter productive for the composting process of the deep litter method. I applied some once but don't know if i will again. I really haven't noticed that much odor from my chickens yet . I appreciate hearing the different opinions from everyone on the subject.
I free range my flock daily. I use it mostly in the areas that my birds dust bathe, I have several different species and types of birds and waterfowl. I do not use it in the coops, since I use deep litter, it would kill the "good bugs" needed to decompose the litter.
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I think odor is most noticeable when it's rainy. I used to mix a little Sweet PDZ (horse stall freshener) in the deep litter, but then I discovered using Garden Lime, which is much cheaper and works better. It's best not to sprinkle the powder when the chickens are around because of respiratory issues. I mix some into the deep litter and it's also good to put over messy poop in the summer (flies) until you get a chance to clean up the poop (like on a patio). I use a child sized garden hoe in the coop, which is handy to reach/scrape poopy areas where they sleep and handy to turn over/mix deep litter.
I have used sweet PDZ also. Its safe for the birds, and does help keep moisture and odor down.
Lime is a better, inexpensive alternative. It also enriches the compost for garden use later on.