I don't know, the first few times I used it, it was a last resort and I didn't know any better so I didn't dilute it. In the past couple of years it's a standard treatment for my flock, never diluted it once. This time with the awful gaping hole it was also a last resort. That chicken was going to die. I didn't dilute it and poured almost an entire dram of the stuff into her body cavity. Now, I probably wouldn't eat her eggs for a day or two but she's just as happy as she can be today. And of course I know that anecdotal evidence counts for naught but for me, on my farm, it's tea tree oil.
To dilute any essential oil you can make a tincture with it by adding 70-90% alcohol (i.e. one drop of alcohol to 9 drops vodka would be 90% alcohol) or you can put it in a benign carrier oil like vegetable oil, coconut oil, almond oil, etc.... you can even shake it into some water but as you know, they'll separate pretty quickly.