Yes, DE is a good move! The 3 keys to maintaining sheep (and other livestock) health is 1. rotational grazing 2. Diatomaceous Earth 3. garlic/molasses treatment.
For the DE, offer it free choice, mixed in with kelp meal. Ratio of kelp meal to DE is 4:1. The food grade DE is a fine powder and can cause irritation in the sheep's lungs in inhaled. Mixing in with the kelp meal mitigates that and increases palatability.
As for garlic treatment - it is a natural deworming alternative that is very effective if #1 and 2 above are also in place. Per head: 1 Tbs garlic, 1 Tbs molasses, mix with a small amount of
hot water until even consistency. Use a drenching syringe and administer orally. 20 mL for a lamb, 40mL for a ewe, 60mL for a ram.
I hope this helps.