A dyed orange is an item used during Recipe for Disaster: Freeing the Goblin generals to create the Slop of compromise, a bowl of mush composed of various ingredients. The dyed orange is made by using purple, blue, or green dye on regular orange slices. Doing so prompts the message You add the dye to the oranges. They turn an appealing greyish brown colour.
This item should be taken to the Goblin Cook, along with soggy bread and spicy maggots turning them into the desired slop.