Licorice is an herb that contains anti-inflammatory, immune-stimulating, detoxifying and GI-soothing effects, according to many books on the subject. It also possesses a cortisone-like effect.
Because of its above properties, licorice is sometimes recommended for dogs with inflammatory issues like arthritis, as well as allergies or liver disease, as well as GI issues like ulcers.
Some precautions should be taken long-term, due to licorice’s cortisone-like properties. It may also be contraindicated in some situations, like if your dog has heart disease, diabetes or kidney disease.
For more information on this subject, the above issues and the possible pros and cons of licorice for dogs, you might enjoy looking at the Natural Health Bible for Dogs & Cats, by Shawn Messonnier, DVM.