Etodolac is in a group of drugs called nonsteroidal anti-inflammatory drugs (NSAIDs). Etodolac works by reducing hormones that cause inflammation and pain in the body.Etodolac is used to treat pain or inflammation caused by arthritis. Etodolac may also be used for other purposes not listed in this medication guide.todolac works by reducing hormones that cause inflammation and pain in the body. Etodolac is used to treat pain or inflammation caused by arthritis. Etodolac may also be used for other purposes not listed in this medication guide.