Quote from brillohead
If the job doesn't require a nursing license, there is no reason to list it.
Some employment applications ask for any licenses an applicant has held, and whether they're in good standing.
To the OP, I would say that it's a good idea to have your response to a question about a license well-rehearsed. Dispassionately state what happened, avoid blaming others, and say what you've learned from that. If there were conditions that you fulfilled to keep your license, make sure to mention that.
If you've worked as a nurse, it's obvious you have/had a license. You don't need to volunteer that it has a mark on it, but it's worse to appear defensive, I think. In general it is almost always better to bring out weaknesses yourself, rather than have the employer find them through their background search.