You essentially have 3 choices for creating letting for your custom wood sign using your cricut.
Cricut vinyl letters on wood.
Make and place the lettering use a cricut machine to cut print out your vinyl letters.
The material that you use for your lettering is 100 up to you.
Then make sure the board you plan to place the letters on is very clean and dry otherwise the vinyl letters will not stick.
Stain can leave an oily residue that will make your vinyl lift from the surface.
Yes cricut vinyl will stick to stained wood but there is one tip that may make your project a bit easier.
In this tutorial jen creates three custom wooden signs with her cricut machine.
If you are going to glue vinyl letters use e6000.
Seal with a waterbased polycrylic then wait 24 hours.
Removing the vinyl the opposite direction of the wood grain helps to avoid unwanted paint from lifting.
Then after you are done i would use a clear coat meant for outdoor use.
Create a vinyl stencil and paint with acrylic paint.
Your vinyl will stick better and stay on longer.
Learn how to make customized signs with your cricut machine with step by ste.
As other have said i don t know how well it will hold up to the elements.
There will be times when you lift paint when you remove vinyl from a sign.
Next we need to tackle stained wood.
Use a weeding tool to remove the vinyl from the inner part of the letters.
I used craft paint on mine i used old pallet wood cut the one end to a point.
It depends on the look and style you want for your wood signs.