The health benefits of Cedarwood Essential Oil can be attributed to its properties as an antiseborrhoeic, antiseptic, antispasmodic, tonic, astringent, diuretic, emenagogue, expectorant, insecticidal, sedative and fungicidal substance.owever, the complicated names of cedar wood essential oil do not affect the medicinal uses of the oil, of which there are many. Cedarwood is basically a plant native to cold climates and is normally found at high altitudes.