When this does come up, you can react in one of a few ways. You can burn with embarrassment for a while, stuck with this vacant look on your face. Or you can react with the kind of indignant anger that can easily turn violent. Personally, I got to know four men quite well who had been locked up for killing gay men. One of them freely admitted to me that a lot of what he did stemmed from his inability to communicate feelings of love that transcended gender.
People also become homosexual in prison.
I saw more than a couple of blokes batting for the other side. From what I could make out as a passive observer, there seemed to be certain parallels in their individual personalities. One of these parallels is a level of awareness that's narcissistic in nature, and feels driven to project a sexy, dangerous image to women and a manly leadership to other men. Remove the opportunities of attracting and fucking women, add the criminal ability to impress and control like but weaker minded men, and you are left with a powerful, manipulative personality who is totally up their own arse. In long term prisons, where cons can be on the same landing for years on end, the ones who turn don't want anyone else to find out about it.