You buy it from the junk shop.
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You have to buy the Pot (Not Dye Pot or Aging Pot, just Pot) from the Junk Shop, and collect a green herb (In the mountains in the Spring-time). :)
Dyed yarn. Put in a herb or flower! JUST ONE, and put in one yarn! Presto! Just, BE AWARE: DO NOT JUST PUT IN YARN BY ITSELF OR IT WILL BE FAILED YARN!
Ok, first of all, YOU CAN'T DYE WOOL. You have to put the wool in the yarn maker first. Then put the yarn and an herb into the Dye Pot and you get a colored yarn. (I believe this works with all color herbs.) Though, I believe shiny yarn gives you more money.
the dye pot comes with the yarn maker -Genevieve
mix red and blue dye Red dye- redberries blue dye- woad leaves