... I have to presume he helped rear you -- what kind of dad was he? What kind of person have you turned out to be? If he is a crossdresser, he was probably a whole lot more nurturing than most dads!
This said, take it slow!!! You have uncovered something that most crossdressers have lived with since they were
children (some were teenagers, but many of us have been crossdressing -- and knew what we were -- from age 4, +/-). Just FYI, most crossdressers grow up and live in extreme deep fear, with an incredible, almost unbelievable, amount of shame. We are, for the most part, the most closeted people you'll ever study. That said, I could be wrong, but it sounds as if you think highly of him -- that he was a good dad.
He's still the same man!!! And, your children are not in harm's way b/c of this revelation!!!
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What is important is your attitude -- whether you eventually talk to your dad or not. If you do, PLEASE: don't talk to him until you have done plenty of research!!! Many crossdressers NEVER tell their wives -- their soulmates -- b/c that is how deep the fear and guilt runs. Society laughs at Tootsie and Mrs. Doubtfire, but frowns on a dad, husband, friend, or brother they find out dresses up.
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Best Wishes!!!