You certainly could bleach the herl before dyeing it, Dabhoy, it all depends what colour you are after. I don't know what is specified for the Yellow Owl CDC. For all the Diawl Bach variations I know about which use dyed peacock herl, bleach is not used prior to dyeing.
Of course you are quite right in saying that it is generally cheaper to buy ready dyed materials, but I was just answering Tinsoldier's question. I started to dye my own materials because I was after certain colours that were just not obtainable any other way. It is a fascinating subject in its own right.
I would, however, caution against the use of picric acid, Alimar. It carries significant health risks and picric stained materials tend to fade with time. In any case, an almost identical colour can I believe be obtained using acid dyes.
Mugsy
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