Is it ok to use a drop or so of olive oil in ear canal for dry itchiy ear condition?

Yes: Small drop will be safe and should be effective.

It is an OLD remedy,: but still commonly and usually safely used. The American Hearing Research Foundation suggests this method for ear wax maintenance. They suggest putting in a bit of olive or baby oil (making sure it is pure/clean), let it sit in there for a few minutes, and then lie down on a towel to let it drip out. Probably only a FEW drops every week. Good wishes:)