He's backstage at the drag club where he works as a female impersonator, and he's halfway into his makeup. You can see every facial flaw of the male face underneath and the female face he's applying to the surface.
Cigarette smoke drifts through the shot.
You can almost smell the cold cream. He's talking about his life as a homosexual, and there are moments when his voice catches with emotion. We're touched that he's revealing himself so honestly. But then, of course, he breaks the spell with a throwaway one-liner. He breaks a lot of spells that way.