Yes, one of its uses is to dilute dye stain colors. Dye Stain reducer is the clear base the we use when manufacturing our dye stains. We make the reducer first, then add the dye color.
It is easy to make your own custom color Dye Stain by adding in 10% increments until you achieve the color you want. It is not possible to mix too much of our dye stain or reducer together.
Additionally, General Finishes Water Based Stains can be mixed into the reducer, which will lighten the color and thin the viscosity so it will penetrate deeper into the wood.
You can also mix other manufacturers dyes such as TransTint dye concentrate, sold in many wood working stores.
We do not recommend using water to lighten dye stain. Reducer has ingredients to help keep color molecules dispersed evenly in the can.