Hi Reine. Brand new here and stumbled across your post. I felt it was a great issue to address so yours is the first time I post in these forums!

Okay, simply put it can mean a lot of things or nothing. The good news is you both are communicating so there is a significantly less likelihood of your SO going behind your back on the issue. Fantasies are just that, fantasies. I have fantasies that revolve around my real nature and repeat consistently. I have others that do not revolve so much around my nature but come and go depending on mood. The latter tends to be the excitement of the taboo of it all. Example, I have had a fantasy involving being a slave/owned. This one comes and goes, varies widely on degrees. It can be a nurturing situation or literally I am a piece of property where decisions related to my body are made for me. Ultimately this isnt who I am but the taboo of it makes it erotic at times.

Let me point out my view on gay, straight, bisexual before continuing. I tend to think there is only a small percentage of true straight and gay. The vast majority of the population falls in the bisexual grey. It all depends on the circumstances. Some actively pursue bi encounters. Others do both but lean towards one gender. Others still would never consider it except for the right situation. "Gay" man stranded on an island for decades with a woman there is a decent chance they will play. "Straight" man in prison for 50 years and there is a decent chance they will have a same sex encounter.

In terms of your SO his male mode homoerotic fantasy could be a couple things.

1) Just a taboo fantasy like mine.
2) A passing consideration related to crossdressing. I doubt there is any CD that hasnt at least entertained the idea of being with the same sex. Note I said entertain. Most dismiss it.
3) Crossdressing is an outlet for his nature. He could be true gay or bisexual but due to societal constraints or gender typing his brain couldnt accept that he is either as a man. His crossdressing was a way to make his feeling work within the confines he was in at the time.

Now addressing your concern related to gay or TS:
1) TS Concern: Is this scenario possible? Yes. Coping mechanisms create very odd outlets. However, chances are he is not TS. First, if he was TS he would have real issues with his penis. As such the fact his fantasy involves him with a man while he is in boy-mode strongly leads away from him being a TS.

2) Gay Concern: Again, this is possible and of the two its the most tricky. However, considering he is with you and exploring cross dressing there is a strong statistical chance that he is not gay. Bi? Probably but there we enter into what shade of grey. Bi is irrelevant in your concern though because as long as he is attracted to women then the issue becomes whether he will cheat or not. If he isnt a cheater then guy or girl wont matter.

So what does all this mean to you? You are stuck where you were when you started reading but maybe you have a better perspective on things. However, you two obviously have excellent communications. In addition, you seem exceptionally understanding, open minded and accepting. Clearly he trusts you for you to even know all this to worry about. That is a rare thing with CDs. We all to often live in the shadows because most people arent as accepting as you.

So, long story short, your best bet is openly discuss the situation. You deserve to know if there is more to this fantasy. Dont be confrontational. Just follow up on it and let him know you are supportive of whatever the case may be but you feel its only fair to both of you that it be discussed. The point is to put him at ease in case he believes he is gay and feels it might be too much for you to handle or even that he may be ashamed of it. This way he will be most likely to open up and you will get your truth. From there you can both make informed decisions.

Hope it helps