There is a thread in the YT Library about allergies. That's a good place to start.
Benadryl can be used for environmental allergies. It doesn't work for all dogs and it takes at least 10 days to judge whether there is a difference. If environmental allergies are suspected, then Atopica could be tried (or better yet, allergy testing and then allergy shots).
Benadryl won't do a thing for food allergies. Steroids can help either, but they aren't the safest drugs and so it's best to avoid long-term use if possible. Some give a steroid shot to try to break the itch cycle and see what happens. You can do a steroid pill like Temaril-P long-term, but actually figuring out what the problem is (elimination diet if a food allergy is suspected or allergy testing and shots if environmental is suspected) are usually preferred.
Benadryl 2-3 times a day for at least 10 days (vet should have said how often to give it). If no improvement, vet time, and if she is really miserable now, then vet time now to go get some relief.
So to answer your question, yes, steroids are used for allergies. They tend to be very effective, but should not replace a proper diagnosis.
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