Homer called olive oil "liquid gold," and for thousands of years this antioxidant rich ingredient has been the foundation of the Mediterranean diet. But high quality olive oil is not only good in salad dressings and sauces, it also makes a wonderful natural moisturizer for pets. Olive oil contains vitamin E, which helps restore the skin's smoothness. Olive oil aids in soothing your dog's delicate coat, leaving it extra shiny and soft. Using olive oil externally may benefit dogs that suffer from dry, irritated skin.