Whilst this post was started some time ago, one can quite easily refer to these topics much later in time.
There are a huge range of coatings, from natural, modified to fully synthetic. It is always good to know of the options and the pros and cons of as many products as you can, that way one has the choice. If unsure of a product, it is always good to do your own tests and samples. Often, there is no one product that will suit all projects.
If using a product that comes in direct contact with food, or little mouths, then one should really ensure that it is certified food safe or safe for toys. At the very least, one should know the actual ingredients of products. That way, you can make an informed choice.
Natural oils such as Livos (and there are a number on the market) are vapour permeable and allow the timber to move, this ensures no edge bonding. Being penetration oils, one can quiet easily repair and rejuvenate a surface without the need to sand back. The clear oils highlight and intensify the actually colour of the timber one is working with. Containing natural resin, waxes and oil, it is an easy process to buff the dry coat to flatten he wax crystals in the oil and so achieve a glossier look.
In the majority of cases, one wants to highlight the natural colour of the timber that is being worked with. However at times the piece of timber may have yellow tones that intensify with the finish. Here, one can use a white pigmented oil to keep it in its original sanded look. There a many options, it all depends on the outcome and personal preference that is to be achieved.
As to external oils, the darker the stain, the better the UV protection. For external surfaces, it is important to know the maintenance regime as it is no use obtaining a product that will last many years but then needs to be resanded to recoat. Again, external penetrating oils come in natural and synthetic. Synthetic oils often leave a layer that shows uneven wear and tear whereas penetrating pigmented ones, fade off evenly. This generally just requires a clean of the surface and reapply another coat as upkeep. Of course the more natural a product is, confirmed by knowing the full ingredients, then the less contamination the surrounding environment will receive from any runoff.

The Livos Lady