I feel like people are trying to project our modern day beliefs onto the Avatar-verse.
Legend of Korra is not set in 2017, where being open and out is more widely accepted.
It’s set in the equivalent of the 1920’s. During the 20’s, in much of the world, being gay was kept deadly silent; and gay men and lesbians were often arrested for breaking sodomy and obscenity laws.
Honestly from the comics; acceptance is far better than its equivalent time period in our history.