Uses. Licorice root extract is used in alternative medicine as a laxative, a diuretic and an anti-inflammatory agent. It is also used to treat gastric ulcers, respiratory problems such as asthma and bronchitis and skin conditions such as eczema and canker sores.lack licorice that contains actual licorice may have a mild laxative effect. Actual licorice can have serious side effects; do not consume large amounts without your doctor’s approval.