No, you cannot, as DDLs are not recognized by AAD, thus there is no matching object to add to the security group. You can add them as members to any group Exchange recognizes though, including mail-enabled security groups.
Yes, My requirement is to dynamically evaluate members and give authorization for users to access from O365 Group.
So, To summarize - I cannot add DDL into O365 Security Group. But, I can create a Group in AAD based on dynamic rules similar to DDL. And Use this AAD Group directly in SP permissions mapping. Am i right?
Also, on the other hand - Do i need to mandatorily enable external sharing on SP site collection to give permissions directly to DDL?