It is permissible for women to wear a nose ring if it is part of adornment in that community, according to the Hanafi Madhab as mentioned by Imam Ibn Abideen.
عِمْرَانَ بْنَ حُصَيْنٍ فَسَأَلْتُهُ فَقَالَ: «كَانَ رَسُولُ اللَّهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ يَحُثُّنَا عَلَى الصَّدَقَةِ وَيَنْهَانَا عَنِ المُثْلَةِ»
Imran bin Husayn said, ‘The Prophet ﷺ used to encourage as to give charity and prohibit us from mutilation.’ (Abu Dawood 2667, Hasan).
There is a concern with piercings because they may fall under the definition of Muthlaa (mutilation), which is prohibited in Islam (see Hadith above). However, the Sharia clearly permits women to pierce their ears. Therefore, a general rule in the Hanafi Madhab is that piercings that are clearly considered to adorn are permitted. It must be born in mind that this is a general rule and there are other considerations too.
وَهَلْ يَجُوزُ الْخِزَامُ فِي الْأَنْفِ، لَمْ أَرَهُ
(قَوْلُهُ لَمْ أَرَهُ) قُلْت: إنْ كَانَ مِمَّا يَتَزَيَّنُ النِّسَاءُ بِهِ كَمَا هُوَ فِي بَعْضِ الْبِلَادِ فَهُوَ فِيهَا كَثَقْبِ الْقُرْطِ
Imam al-Haskafi: Are nose rings permitted? I have not seen it (meaning an answer to this question in the books of the Hanafi Madhab).
Imam Ibn Abideen: His saying, I have not seen it. I say, if it (the nose ring) is from amongst the things women use for adornment, as is the case in some countries, then it is like the earring, in that country. (Radd al-Muhtaar).
In the Nass above we see that Imam al-Haskafi was unsure regarding the ruling of women wearing a nose ring (or something similar). However, Imam Ibn Abideen presented the general rule of adornment. Meaning if it is genuinely used for adornment in a particular place then it is permitted. In such places he considered it to be like an earring, so just like the earring is permitted the nose ring is too.
It is best to stick to what has been explicitly permitted, namely earrings and nose rings, and to be careful with the general rule of adornment. As mentioned above, there are other considerations too. Amongst them are the issues of imitating disbelievers (Kuffar) or sinners (Fusaaq) which are fairly complex issues and need to be studied in detail. Which once again brings to our attention the importance of studying the Deen and not relying on Q and A alone.
And Allah (Most High) Knows Best.
– Answered by Shaykh Noorud-deen Rashid (27.08.2021)
How strong is the Hadith on mutilation?
See also (video):