The fine powder is abrasive and is also hygroscopic. The Red Spider Mite only infest chickens at night while roosting on the perches. During the day they hide in cracks and crevices. A liberal dusting of DE along the perches, in cracks and on the surrounding woodwork prevents some mite from reaching the chickens and kills those that attempt to cross it.
I believe I saw that DE was sprinkled on the bottom tray of the hive to promptly kill any fallen varroa. It only attracted my attention because I already use DE.
Malcolm B.