I want to make a towel for a friend with the Okinawa Ornament designed by basketkase. Would it work ok to just embroider it right on the towel? I think it is suppose to be FSL?

Yes, these ornaments are not fsl...they are meant to be embroidered onto fabric, so by all means embroider it onto a towel and just leave off the stitches for the hanging loop. Vicki aka Basketkase

Go ahead and embroider it, these are not free standing lace