I use acrylic ink to color the ornaments I make. It acts like a dye where it sinks into the wood and will bleed. I use burn limes to keep it under control. The colors are very vibrant. Here are some eggs I did for reference.
I did candle ornaments this year and dyed the bases before gluing in the candle. I should mention I brush it on and never leave a brush mark. I use wipe on poly to give them a shine.