Essentially, diatomaceous earth is the fossilized remains of hard shelled algae. It can be used to assist filtration. Based on my experience, its own filtration efficiencies are not high. However, you can try it for the materials to be targeted for separation. Its filtration performance depends on a number of factors including its amorphous structure and your targeted contaminants’ characteristics.
Yes, this may be a problem, the earth diatomaceouse is a natural material and may have some effect on the turbidity of the water. One way to avoid this problem is to perform a preliminary calcination, and I suggest a temperature of 800-900ºC. Will be sufficiently high temperature to remove any organic contamination and not too high to change the microstructure characteristic of diatomaceouse (important for physical removal in waste water).