Wool Dyes

The various substances that are called dyes in the game can all be applied directly to sheep to color them, and when you do that, the Sheep takes on that color in its Wool.  After you shear the Wool it will appear to be white (leaving white remnants on the Sheep) but when the Wool regrows after the Sheep eats Tall Grass, the Wool will grow in the color you dyed it before you cut it!   That means you can set up your own custom colored flock if you like...

-- Black Dye

Obtained by combining an Ink Sac with a Wool Block or applying it to a Sheep.  Note that Black Sheep spawn in the game naturally, so this is not really required to obtain Black Wool.

-- Bone Meal

Using Bone Meal to dye a Sheep white is the only direct use you have for it in this fashion, as a dye, since it cannot be used to change colored wool blocks back into white wool at a crafting table.

When it is combined with other dyes, you can produce new colors, including:

Bone Meal Ink Sac = Gray Dye

Bone Meal Lapis Lazuli = Light Blue Dye

Bone Meal Gray Dye =Light Gray Dye

Bone Meal Cactus Green = Lime Dye

Bone Meal Rose Red= Pink Dye

-- Brown Dye

Brown Dye can be crafted by placing one Cocoa Bean and one Wool Block in a crafting window.  Note that this does not create a Dye as such, but rather dyed Wool -- but as Brown Sheep are a naturally occurring color anyway, and Cocoa is better used in making Cookies anyway, you might not want to do this.

-- Cactus Green Dye

Cactus Green Dye is crafted by cooking a piece of Cactus in a Furnace.  It can then be combined with a Wool Block or applied to a Sheep to create a Green Wool Spawn.

-- Cyan Dye

Cyan Dye is crafted by combining one Cactus Green Dye and one Lapis Lazuli in a crafting window.   It can then be combined with a Wool Block or applied to a Sheep to create a Cyan Wool Spawn.

-- Dandelion Yellow Dye

Dandelion Yellow Dye is crafted by placing one Yellow Flower into a crafting Window.   It can then be combined with a Wool Block or applied to a Sheep to create a Yellow Wool Spawn.

-- Gray Dye

This color is obtained by crafting one Bone Meal with one Ink Sack.   The resulting dye color can be combined with Wool to make Gray Wool, or can be applied to Sheep to turn them into a spawn for that color of Wool though it should be noted that as this is a naturally occurring color anyway, doing so is of limited value.

-- Lapis Lazuli Dye

Lapis Lazuli Dye is crafted by placing one Lapis Lazuli into a Furnace and firing it.   It can then be combined with a Wool Block or applied to a Sheep to create a Lapis Lazuli Wool Spawn.

-- Light Blue Dye

Light Blue Dye is crafted by combining one Bone Meal and one Lapis Lazuli in a crafting window.  It can then be combined with a Wool Block or applied to a Sheep to create a Light Blue Wool Spawn.

-- Light Grey Dye

Light Gray Dye is created by crafting Bone Meal and Gray Dye together, or alternatively, by crafting two units of Bone Meal with one Ink Sac.   The resulting dye color can be combined with Wool to make Light Gray Wool, or can be applied to Sheep to turn them into a spawn for that color of Wool, though it should be noted that as this is a naturally occurring color anyway, doing so is of limited value.

-- Lime Dye

Lime Dye is crafted by combining one Cactus Green Dye and one Bone Meal in a crafting window.  It can then be combined with a Wool Block or applied to a Sheep to create a Lime Wool Spawn.

-- Magenta Dye

Magenta Dye is crafted from combining one Purple Dye and one Pink Dye in a crafting window.   It can then be combined with a Wool Block or applied to a Sheep to create a Magenta Wool Spawn.

-- Orange Dye

Orange dye is crafted by combining one Rose Red Dye with one Dandelion Yellow Dye.  It can then be combined with a Wool Block or applied to a Sheep to create an Orange Wool Spawn.

-- Pink Dye

Pink dye is made by combining one Rose Red Dye with one Bone Meal in a crafting window.  It can then be combined with a Wool Block or applied to a Sheep to create a Pink Wool Spawn.

-- Purple Dye

Purple Dye is crafted by combining one Rose Red Dye and one Lapis Lazuli Dye in a crafting window.  It can then be combined with a Wool Block or applied to a Sheep to create a Purple Wool Spawn.  

-- Rose Red Dye

Rose Red is a dye color created by placing a rose into a crafting window.   It can then be combined with a Wool Block or applied to a Sheep to create a Red Wool Spawn, and is used as a mixing agent for creating other custom colors.