Health Benefits of Licorice Root For Dogs, Cats, and People. Licorice Root is often used as a steroid replacement and acts as an anti-inflammatory. It also aids in stimulating digestion and relieving bowel irritations and leaky gut. It can also have a mild laxative effect and is a diuretic. Licorice root has also been used to relieve coughs, and can be used to help balance cortisol and relieve stress. Licorice root is commonly used as a “guide drug,” meaning it is used to enhance other herbals.