yarn-dye vs dye

yarn-dye is not a noun while dye is a noun.

Word	Noun	Adjective	Verb	Adverb
yarn-dye	No	No	Yes	No
dye	Yes	No	Yes	No

As verbs, dye is a hypernym of yarn-dye; that is, dye is a word with a broader meaning than yarn-dye:

yarn-dye (noun)	dye (noun)
	a usually soluble substance for staining or coloring e.g. fabrics or hair

yarn-dye (verb)	dye (verb)
dye (fabric) before it is spun	color with dye
	color for microscopic study