I would think that, if it were a very dry wound and you could be sure that the dressing wasn't going to get wet, it wouldn't hurt to try it. My only concern would be that, if the dressing got wet (either from "above" or absorbing moisture from the wound), that would provide a pathway for whatever chemicals are in the dryer sheet to leach down into the wound ...
I agree,though that charcoal or baking soda, which would absorb the odor rather than just "mask" it, might be a better choice all 'round.
Hey

-- what about those "odor-absorbing" sanitary napkins that have baking soda in them? They are absorbent, too ... Might be worth a try.