In what way is it damaged, and how badly?
Oilstones, like most sharpening stones (water, ceramic diamond) are usually used to hone the edge (unless the stone is very coarse indeed) whereas reshaping is usually carried out on a grindstone.
So yes, it is possible, but it may not be the ideal way to do it, depending on the nature and degree of the damage.
Can you post a pic? That would help.
A piece of sharp emery cloth stuck to a flat surface with double sided tape is what I usually use first for grinding back. Much rougher and quicker that an oil stone and not going to get hot as it might mechanically.
I'd only go back to the oil stone after the dink had vanished completely by more abrasive means.
Shouldn't be too difficult with that iron of yours Dave, last time I sharpened it it didn't put up much of a fight.