Yes you can....I want to say the first time I saw this suggested, it was by Don Kuchenmeister aka "the FatBeeMan". Not sure if you're familiar with Don or not, but he has a ton of YouTube videos and a pretty big following.
I've actually used DE a couple times around my hives to try and get the Chiggers under control...they were wearing me out.
However, if you get a good rain, you'll want to reapply...
Another option is to attach a small makeshift container filled with soapy water, with #8 mesh covering it to protect your bees, just beneath the front of your hives to prevent the Larva from ever making it to the soil. This will also allow you to monitor exactly what you have coming out of each hive.