I use some DE, but very judiciously.
Get it cheap (compared to other sources) at my feed mill from their bulk stock,
it's 100% Food Grade DE (no clays added as many other 'DE' products contain, read labels carefully).
I put it in all the cracks and crevices under the straw bedding in the nests,
and in many other cracks and crevices around to coop where it cannot become airborne,
as a preventative.
I also use it in and around my feed bins as I have had a couple go rounds with grain mites coming in with feed.
I stage new feed bags on large kennel trays edged with DE in the garage for 24 hours to inspect for grain mite activity,
then mix a bit of DE in with feed before transferring it to my feed bins in the coop.
DE is very effective in this application and is commonly used in animal feeds as a pest deterrent and an anti-caking agent for stored grains/feeds.