Hi Barbara,
I've taken lots of lessons dressed. Some at a gay-oriented place, and many at a straight place here in LA. I've had no problems. Mysteriously, the dance teachers all knew my name and greeted me
In a class of 20+ (presumably straight) people, I've been asked to help demonstrate things, with the class circled around me and the instructor -- the first time that happened, my heart raced, let me tell you!
In the group lessons (salsa and swing) I've taken, only a couple of guys avoided me as a partner as we rotated. (In group classes, it's typical to rotate partners every few minutes). I haven't taken lessons in over a year, and I'm thinking of starting again, it's a fun thing to do on a weeknight.
Since all my Salsa and Swing lessons have been dressed, I don't have to worry about transitioning to heels
I've danced with guys many times at straight places. Some knew, and some didn't. As I become a regular at a place, eventually everyone figures me out, and the number of dances decreases, though