Olive oil contains the fat-soluble vitamins A, D, E, and K. Some of these vitamins may be beneficial for the skin. People have used vitamin E oil topically throughout history to treat a variety of skin conditions, including psoriasis and eczema. olive oil may sometimes be used to treat bacterial infections of the skin. It may also improve healingTrusted Source in people with foot ulcers caused by type 2 diabetes. Olive oil is a popular natural moisturizer that is often used to soften both skin and hair.