Step 1: Find the Objects
So first off find the objects you need to make dye. In my case I'm making yellow dye.
Step 2: The Sheep
You will now need to find a sheep(s).
Step 3: Dye
Now create your colored dye.
Step 4: COLORS!
Now have the dye in your hand and press and hold on the sheep as you would with shears. (I don't know if this works on PC or Xbox sorry.) voila! You now have a colored sheep! (This is my first indestructable so sorry if you got confused.)