Is it possible to use state_color: true (or some other way) to change the color of binary sensor icons based on their state? I’m trying to have the door/window sensor icons change color based on if they are open or closed. If so, where do I place it in automations yaml? Thanks!
You do not place it in automations.yaml. That is for automations.
You need to use a third party tool called card mod. See: 🔹 Card-mod - Add css styles to any lovelace card - #1310 by Ildar_Gabdullin