Oil bath filters are the BESt option for dusty conditions but are maintenance intensive, which is why they are no longer commonly used. I believe others have pointed this out as well.
They are WELL suited to off-road environments on mostly level ground, when you start talking about construction equipment that must operate on slopes, the advantage of the oil bath disappears quickly.
The oil sits in a bowl at the base of the filter assembly, air is dran into the TOP of the filter and flows downward towards the oil. The oil level covers the bottom of the "U" such that wit hthe engine off, there is no apparent way for air to get into the engine unless it actually goes thru the oil pool. In reality, during operation, a small smount of oil is pulled up into the internal passages of the filter assembly when allows the air to just barely sneak in above the oil level (which is a little lower with the engine running). The oil also coats a loose mesh inside the filter further enhancing dirt-trapping.
The air, once past the oil in the bowl, travels thru the oily mesh upwards to the lid or cap where it again takes a 180* turn into the intake (carb etc), but is very clean.
The harder the engine is working, the more airflow thru the filter, the greater the air velocity, the LESS likely dirt will make it past two 180* turns, the more oil is pulled upwards on the interior portion of the filter, the more oil on the mesh the better it is filtered.
Used oil is PERFECTLY ok to use in them, but as mentioned, it should match the crankcase viscosity as appropriate for the climate.