Any silicone-based lubricant will do. I think Lighthound sells small tubes of what seems to be the standard stuff.
Personally, I have 5 flashlights that have o-rings. I haven't lubed any yet, because I haven't actually seen them get dried up or whatever it is to indicate they'd need lube. The latest I've gotten, I'm going to end up purchasing a tube just to be safe. But so far I've had several of these lights a year or more, and I haven't seen a need. I'm guessing mileage varies, and some people do need more than others. My understanding is the more you screw/unscrew the thread to which the o-ring is attached, the more friction, heat, and wear might cause problems. So this is the purpose of the lubricant, in my opinion.
Ironically, the same purpose of lube in sexual intercourse.
But, yes, eventually it will be a good idea. Especially if you leave a light on all the time and have to change batteries very often. My lights right now, I either do not use very much, or keep them on only a small bit of time each use, so batteries last me a good while longer than some people's.