@Myorn and @ others.
I specifically translated okama as "fag" on my earlier comment since it's a *very* offensive word in Japanese, from the point of view of LGBTQ+ Japanese people. Just watch Japanese media from early 80s to mid 90s and see how people use the word and just how many times it's used in an offensive way.
Now, how offensive is it though? That's not set in stone since different people view it differently and since Japan tends to be TURBO conservative a lot of people know that it's offensive but not that offensive (example, the okama people in One Piece got introduced in early 2000), for most young people nowadays this term is mostly a no-go though.
Today in TV shows and variety programs in Japan these people are mostly referred to as おネエ (read this as onee, yes, it's the same word as big sister but do not use honorifics with it otherwise it mostly means big sister. In context it should be seen as "miss/lady" as in a young adult female or an adult female.)
Like the word queer, there's in Japan a micro side to it that actually likes the word okama so uses it without a negative connotation but it's so minor it doesn't help the discourse.
There's no difference between drag queens and ostensively gay people in Japan, these people are mostly "used" as comedic relief on Tv shows and are only accepted by society because they are seen as "being weird" in a non provocative way.
They being so present in today's Japanese TV shows actually reinforces that you should not be like them, because they stick out too much.
Unless you're a member of LGBTQ+ in Japan and possibly are Japanese yourself, there is a good chance you're not going to be super knowledgeable when it comes to this world.
In the anglosphere there are several terms to identify different characters in media that overall gravitate to the same topic:
crossdresser, trans person (MtF),
femme boy (gay men who like to present themselves in a feminine way).
What about in Japan? Just 男の娘 (
otokonoko, at being very vague and inclusive you could translate that as "young man who has a feminine aesthetic".)
Japan only having one word which is vague and also a sort of umbrella to include all the subgenre within it causes a lot of confusion in your average anglophone speaker.
Most Japanese people actually never mean to provoke or hurt others when they use whatever word they want, it's part of their culture to not be blunt so here as well Rui probably threw the character in for variety but he's likely not really super knowledgeable on this and just used the word he knew.