Lavender oil is generally considered safe for dogs and may even have medical benefits, such as reducing anxiety. However, it should still be diluted appropriately, whether using it in your diffuser or applying it to your pet. Do not apply concentrated lavender oil directly to your pet. Speak with a holistic veterinarian about lavender oil for dogs.Lavender oil is generally considered safe for dogs and may even have medical benefits, such as reducing anxiety. However, it should still be diluted appropriately, whether using it in your diffuser or applying it to your pet. Do not apply concentrated lavender oil directly to your pet. Speak with a holistic veterinarian about lavender oil for dogs.