I still feel really bad for Stolas at Ozzie's. I feel like he was sort of facing an impossible choice there? I think he absolutely could and should have stood up for Blitz more; even if he couldn’t shield him from Ozzie, the knowledge that Blitz was under some sort of protection or banner of courtesy from a demon prince might have made at least Verosika back down. He could at least have defended him.
At the same time, Stolas’s whole strategy for surviving life seems to have been deferring to the status quo or "what should be." His father told him to marry Stella, so he did. As a demon prince he was supposed to stay in his marriage, so he quietly accepted Stella's mistreatment of him to maintain that status quo. And when a Sin himself called out Blitz, well, Stolas went back to his strategy of keeping his head down.
We know that Blitz’s first instinct is to protect his friends, even if it puts him in the line of fire. But well, Stolas doesn't really seem to HAVE friends. He didn't have to put himself in the line of fire because he was always there to begin with. He was always the target. The one person in his life he might have had to protect was Via, who seems to have at least an OK relationship with her mother judging by her reaction to Stolas yelling at her. So either Via was never a target of her mother's vitriol, or Stolas was able to insulate her from it by absorbing it himself. Maybe a bit of both. Either way, he was her primary victim from the start. So his instinct at Ozzie's was to quietly accept his jokes, except that now someone else was also a target.
I've seen the scene at Ozzie's compared to the way Ozzie stood up for Fizz at the end of s2e7, and I think they are definitely important parallels. However, there's one pretty glaring difference: Fizz and Ozzie are already in a loving, committed relationship. When Ozzie yells that he loves Fizz, it may be news (to some degree) to the rest of Hell, but it certainly isn't news to Fizz. The same can't be said of Stolas and Blitz. When Ozzie asks if he gave up his perfect family just to fuck Blitz, Stolas COULDN'T deny it, because that would mean telling all of Hell- INCLUDING BLITZ- that he was in love with him. And at that point in the evening, after he'd been anxiously trying to get Blitz to engage with him at all throughout their supposed date, he had every reason to believe those feelings weren't returned. And what other reason could he give?
He missed his opportunity to stand up for Blitz, but when Ozzie turned his sights on him, Stolas had no choice but to tacitly confirm Ozzie's assumptions. And honestly, I don't even think Ozzie was trying to be cruel, at least not to Stolas. Blitz was a target because of his past with Fizz, but Ozzie could have just as easily been sort of impressed with Stolas, especially given his apparent reputation as a stuck-up bore. I mean, Ozzie literally holds Stolas up as embodying the meaning of lust, right after tearing down Moxxie for not being lustful enough. Ozzie had no way of knowing about the fragile, tender thing that Stolas and Blitz were just beginning to create.
Unlike Blitz, Stolas isn't someone who usually jumps into action. He wasn't prepared to leap to Blitz’s defense because he wasn't used to having anyone to defend. And by the time he was in familiar territory- becoming a victim himself- he had no way to defend him without offering up his heart on a platter for Blitz to reject and the rest of Hell to ridicule. So he stayed quiet, and it all came crashing down anyway.