I think she was sadistic but I don't think it was sexual. She didn't come off as a sexual person in any way really in Garden of Shadows.
The reason that she had Corinne take off her shirt was to have the children see the injuries from her beating. They couldn't see them through her clothing. The removal of clothing wasn't sexual so much as practical.
That's not say Olivia didn't enjoy having that power over Corinne- not only to injure her but also to make her seem weakened in front of her own children. She was always annoyed by Malcolm's indulgence of Corinne as a child and hurting Corinne as an adult was in a way about getting back at Malcolm as much as it was about Corrine. It was a way of having power over him too. And of course it was a way for her to demonstrate her control to the children. It was a warning. She was saying "Look what I can do to your mother and imagine what I could do to you if you don't do as I say". So it was a way of having power over the children that she believed were the devil's spawn also.
I think she took pleasure in it on multiple levels. But I don't think any of those levels were sexual. People can be sadistic in nonsexual ways too, and I think that's how Olivia's sadism works. She gets satisfaction out of seeing people she dislikes/resents brought low and under her power. Then she flaunts that power, and uses it to make them suffer even more.
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