Scents for baby

Pen • 8/17 🌈👧🏼 | 11/19 🌈👦🏼| 👨‍👩‍👧‍👦
So, I know baby powder is a no-no, and most natural baby products do not have added scents or fragrance, but there's something about that baby powder smell that's so hard wired to make you think "baby" and "smells good." Of course there's nothing like that fresh uterus and amniotic fluid smell 😜
So I'm wondering, is the only reason we don't use natural scents (like a lavender oil) in baby products just because some babies might be more sensitive to the oils? I've been thinking it might be nice to mix some lavender oil in with the coconut oil I plan to use to moisturize my baby's skin, but of course I don't want to put anything on her that is likely to cause a reaction of some kind. 
Anyone able to shed any light on this or share your experiences using natural scents for babies? Words of wisdom or warning ? Thanks!