I don't believe there is dye in it. Yes, it was used in the printing process and is not used widely anymore in the US but it is still used by some shops. Most of the pre press work is done with computers now.
I do not know a great deal about the compostion of lith film but I used it a great deal 20 years ago as I worked in a prepress shop. We did the film work for pages that were to be lithographically reproduced (printed with a printing press). Halftone films (dots) were made to reproduce photos, mimicking continuous tone, in print and line films were made for text and line art images and perhaps tint color boxes. Usually the film was exposed in a process camera, the 12 foot long horizontal types with like a 400 mm lenes. It was all quite fun in retrospect. The lith film is a fine grain material. Pretty much all the grain are similar size. The fine grain is was makes it slow, the uniformity of size makes it high contrast. The goal with line film was to have a density of opaque areas like 3.0 to 4.0 so that when the film was used to expose a printing plate it would it could stop the carbon arc light source used to expose the areas of the plate (clear area of film) intended to carry ink to the sheet of paper on press. All the pages were assembled in negative form.
I'm getting to ramble here. Anyway I don't much of the technical stuff but might be able to answer a practical question or two or certainly theroy of what it is used for i litho printing.
Some black and white photographers today use lith films to expose in camera and some use it for generating mask films used with enlarging and it is used in some of the alternatve photo printing processes. It is pretty fun stuff. developed in a print like developer such as dektol it has a bit of a curve and less D max. In the old lith developers it has NO curve and high D max.The old lith developers were a two part product, A B, that was combined right before use. It was potent stuff with paraformaldehyde and sodium hydroxide in it.
I recall the type of metals in the emulsions were changed over time with tighter environmantal regulations but as Michel states above cadmium, I heard talk of small amounts of mercury in some at times but I sure it was removed. The manufactuers were protective of their formulas.