How to give permission to a user to manage a DL on O365?
With On Prem Exchange you can give permission to specific users to manage a DL and they can do so in the GAL to modify members. In O365 this is not possible. Is there a way to give them access to a DL to modify members in O365 without having to give full Exchange setting rights?
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It's possible, and it's the exact same process. Assuming we're talking about DL created in O365 and user with ExO mailbox, that is. In the default configuration users will be able to manage DLs they own via Outlook or OWA, and create new ones as needed.
Sorry to mention that we're in a Hybrid environment so these DL's were created On Prem Exchange. In Hybrid the O365 DL's are managed via On Prem.
If this is a hybrid environment, where the source of authority is Active Directory, not being able to continue giving users the ability to do this is one of the limitations. Companies will often turn to a third party app which which will allow end users to modify (typically via a web page) DL members on-premises.
Here is a decent article to have a look at: http://blogs.perficient.com/microsoft/2015/04/office-365-allowing-users-to-edit-exchange-groups-they-manage/
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