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One thing I have learned about the government in this country, along with the Food & Drug Administration and U. S. Dept of Agriculture, is that no one should trust them. Putting it on the label and saying you can use it on dogs does not make it safe. If enough money changes hands and enough people get properly compensated to 'certify' products as safe, it will happen. Remember Phen-Fen? Thalidamide? Artificial sweeteners? Genetically Modified Soybeans? All of these things were found to be safe and effective, but they are not. If you wouldn't use it on yourself, then do not use it on your chickens.
I use food grade DE on everything and everyone. Dogs, cats, carpets, yard, chickens, coops, under the house, you name it and I feel very comfortable doing it. If you still have a problem with mites, maybe you should have a coop deep clean and try all new bedding material and putting some of the DE in one of the 'dust tubs' they make for themselves.